27th Mar 18: CBI FIR details how rules were bent to help set up MCX

A first information report (FIR) filed by Central Bureau of Investigation against high-ranking officials belonging to MCX and Forward Markets Commission, the then regulator in charge of overseeing the commodities derivatives exchange business, lays bare violations that allegedly took place in order to help set up the commodity exchange.

The investigating agency has booked officials such as Jignesh Shah, the former MD of MCX, four former chairmen of FMC, among others.

Moneycontrol has seen a copy of the FIR. Below are details of the alleged violations:

– In March 2002, the food and public distribution department of the Ministry of Consumer Affairs invited applications for setting up a commodity exchange. FMC got 16 applications from which four were sent to the ministry for approval, including MCX. This was despite the fact that MCX did not meet several requirements: the company lacked an efficient clearing and settlement system, did not own its warehouse, and had not even submitted three years of audited accounts as it was a new company.

More details here

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