Court rejects Shah's bail application, remands him to JC

A court here today rejected the bail application of Financial Technologies (India) Ltd promoter Jignesh Shah and remanded him to judicial custody till October 10.
Shah was arrested by the CBI last week in connection with a case against him for allegedly suppressing facts to get an extension for the stock exchange MCX-SX from the market regulator SEBI.
As his CBI custody ended, he was produced before the special court for CBI cases today which remanded him to judicial custody. The court also rejected his bail application.
MCX-SX, promoted by Shah and others, had submitted an application in 2008 to SEBI, seeking extension of its recognition as an exchange for currency futures trade.

MCX-SX promoters had entered into a share buy-back arrangement with Punjab National Bank, L&FS and IFCI in violation of Securities Contract Regulation Act and Securities Contract (Regulation) (Manner of Increasing and Maintaining Public Shareholdings in Recognised Stock Exchanges) Regulation, 2006, according to the CBI.
CBI alleged that Shah, in connivance with SEBI officials, suppressed this fact while obtaining the extension.
SEBI officials deliberately did not issue a notice to the exchange for cancellation of its recognition in the currency derivatives segment when SEBI had already rejected a request of MCX-SX for trading in other segments, CBI said.
Shah is also facing criminal cases related to the NSEL scam.