Jignesh Shah arrested following raids on home, offices

CBI also searched at least five current and former Sebi officials who were named in an FIR filed by it

Tainted NSEL director Jignesh Shah was arrested on Tuesday afternoon following extensive raids at his residence and those of other directors.

The troubles for Financial Technologies India Ltd (FTIL) intensified in the morning with the Central Bureau of Investigation conducting search operations at the company’s premises in connection with MSEI (formerly MCX Stock Exchange) licence grant case.

The search operation were also going on at Multi Commodity Exchange( MCX), Metropolitan Stock Exchange ( MSEI) and at the residences of NSEL directors Jignesh Shah, Joseph Massey and Shrikant Javelgekar. The three were also on the boards of MCX and MSEI.

The federal agency also carried out searches of at least five current and former officials of markets regulator Securities and Exchange Board of India (Sebi). These officials were named in the FIR filed by the CBI.

CBI is believe to be investigating their roles in the licence grant case as well as in the Rs 5,600 crore National Spot Exchange (NSEL) crisis.

CBI had registered a preliminary enquiry against former Sebi chief C B Bhave, its former whole-time member K M Abraham, MCX and FTIL in March 2014.
 
The agency registers a preliminary enquiry when it receives a complaint which it believes has some merit, but doesn’t justify the registration of a regular case under Indian law. However, later probe agency had withdrew name of Bhave from enquiry.
 
The enquiry was registered in connection with the grant of a licence to MCX-SX, which first started operations in 2008 with its currency derivatives segment.