FTIL denies CBI allegations

Said the accusation by the investigating agency that buy-back agreements were illegal "does not hold ground"

A day after the Central Bureau of Investigation (CBI) registered a criminal case against Financial Technologies India Ltd (FTIL), promoter of Multi Commodity Exchange Stock Exchange (MCX-SX), in the grant of a licence to the stock exchange, FTIL issued a clarification, denying the charges.

In a BSE filing, FTIL said the Securities and Exchange Board of India had declined a licence to MCX-SX on the grounds that the exchange and its shareholders were involved in purported buyback deals. It added an order dated September 2010 had clearly mentioned the buyback arrangement between FTIL and a nationalised bank. FTIL said the buyback arrangement was ruled legal by the high court here and, subsequently, by the Supreme Court. As the alleged violations of Securities Contracts and Regulations Act, with respect to the manner of increasing and maintaining public shareholdings, were ruled out by apex bodies, not norms had been violated, FTIL said.