CBI to take final call in MCX PE soon

CBI will soon take a final call on the preliminary enquiry (PE) against former SEBI Chairman C B Bhave and ex-member K M Abraham in connection with alleged irregularities in granting sanction to the MCX Stock Exchange (MCX-SX) by the market regulator and subsequent renewal.
Highly-placed sources said the agency will decide whether the enquiry would be closed or it will be converted into an FIR thus starting a full-fledged investigation.
The sources declined to give out details saying a final call will be taken after analysing all records and evidence collected during the preliminary enquiry.
According to CBI, the PE was registered on issues of alleged irregularities in granting sanction to the MCX Stock Exchange (MCX-SX) by the Securities and Exchange Board of India in 2008 and renewing the recognition in 2009 and 2010.

The probe by CBI is to ascertain how MCX-SX was granted permission despite opposition by SEBI when Bhave was the head of the regulatory authority.
MCX-SX was set up by Jignesh Shah-led Financial Technologies India Ltd (FTIL) and its commodity exchange arm MCX and began functioning as a full-fledged stock exchange last year after a prolonged battle with SEBI.

An FTIL spokesperson had told PTI that "we will provide full cooperation to the authorities."
Reacting after the registeration of the PE, Bhave had claimed the agency was working with a "crazy logic" and has ignored the fact that the tax department itself found no merit in the case years ago.

Bhave had also accused CBI of indulging in "pick-and- choose" while registering a preliminary enquiry (PE) against him and another former senior official of SEBI in matters related to Financial Technologies (India) Ltd founder Jignesh Shah.