Former SEBI chief Bhave, others under CBI scanner

PTI Updated - March 12, 2018 at 09:09 PM.

The CBI on Thursday registered a preliminary enquiry against former SEBI Chairman CB Bhave, former SEBI member KM Abraham, and the Jignesh Shah-founded FTIL and MCX, among others.

According to the CBI, the enquiry was registered on issues of alleged irregularities in granting sanction to 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 the CBI is to ascertain how MCX-SX was granted permission despite opposition by SEBI when Bhave was head of the regulatory authority.

MCX-SX was set up by the Shah-led Financial Technologies India Ltd (FTIL), and its commodity exchange arm MCX. It began functioning as a full-fledged stock exchange last year, after a prolonged battle with SEBI.

An FTIL spokesperson told PTI: “We will provide full cooperation to the authorities.” Bhave and Abraham could not be immediately contacted.

The exchange was initially granted permission for only a limited segment of currency derivatives, in 2008, on the condition its licence would require approval every year.

Published on March 13, 2014 17:41