Agri Business

NSEL: Financial Tech may not get another chance to quiz audit firm

Suresh P. Iyengar Mumbai | Updated on November 24, 2017

Financial Technologies, which missed an opportunity to cross examine Grant Thornton on Tuesday, may not get another chance to do so.

Ramesh Abhishek, Chairman, Forward Markets Commission (FMC), said Financial Technologies had already been informed that the time for cross examination would not be extended beyond December 3.

“Joseph Massey had appeared on Tuesday (November 3). The three individuals (Jignesh Shah, Joseph Massey, Shreekant Javalgekar) have not even asked for more time. After Thursday’s cross examination, the Commission will decide the matter,” he said.

Asked how soon a decision was expected, Abhishek said the Commission cannot commit on how long it would take to pass an order.

Based on the audit firm’s forensic report, the four members including Jignesh Shah, Joseph Massey, Shreekant Javalgekar and Financial Technologies were issued show cause notices by the commodity market regulator FMC, to prove their ‘fit and proper’ criteria to be associated with the functioning of exchanges.

Responding to the show cause, all the four members sought permission to cross examine Grant Thornton and a time was fixed on December 3.

Cross examination

According to sources, Massey claimed that the cross examination could not happen as their lawyers were engaged in the Court. He provided five alternative dates next week for consideration.

Last week, Grant Thornton had posed a similar request seeking two weeks time, but the market regulator turned it down and fixed the meeting for December 3.


The ‘fit and proper’ criteria of these four members is under question after the National Spot Exchange, promoted by Financial Technologies, failed to settle trade worth Rs 5,600 crore. All these members held key positions in NSEL. The commodity market regulator is expected to pronounce its verdict early next month.

Once declared not ‘fit and proper’ by the FMC, all the four former directors of MCX would not be able to associate themselves with any exchanges.

Though they have the right to appeal against the decision in the appropriate court, it may have an impact on Jignesh Shah-owned Financial Technologies, which has interest in many commodity exchanges abroad.


Published on December 04, 2013

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