FMC declares Jignesh Shah, FTIL unfit to run MCX

Says FTIL cannot hold more than 2% stake in MCX

The Forward Markets Commisison (FMC), the commodity derivatives markets regulator, in its order dated December 17 declared that Financial Technologies was unfit for holding more than 2% stake in the Multi Commodity Exchange (MCX), promoted and run by it since over a decade ago.

Holding FTIL and its director responsible for the Rs 5,500 crore payment crisis that erupted in National Spot Exchange Ltd (NSEL), FMC ordered, “in the public interest and in the interest of the commodities derivatives market, the Commission holds that FTIL is not a ‘fit and proper person’ to continue to be a shareholder of 2% or more of the paid-up equity capital of MCX as prescribed under the guidelines issued by the Government of India for capital structure of commodity exchanges post 5-years of operation."

It is further ordered that neither FTIL, nor any company/entity controlled by it, either directly or indirectly, shall hold any shares in any association / exchange recognised by the Government or registered by the FMC in excess of the threshold limit of the total paid-up equity capital of such association / exchange as prescribed under the commodity exchange guidelines and post 5-year guidelines.