27th Mar 18: ED plans to register case over Mauritius firm’s MCX exit

The Enforcement Directorate is planning to register a case regarding the exit of a foreign investor, Alexandra Mauritius Ltd, from the Multi Commodity Exchange (MCX) without the approval of the FIPB, a source told Moneycontrol.

The RBI had registered a complaint in this regard with the ED in 2017.

A senior ED official told Moneycontrol, “We are studying the complaint as well as the CBI probe report and are likely to register a case in the next few days.”

Alexandra, one of the institutional investors in MCX, has been untraceable and failed to get FIPB approval even six years after it sold its stake in the company.

Some RBI officials are also under the scanner since they had approved divestment on post facto conditions despite Foreign Investment Promotional Board (FIPB) approvals not being in place for the Mauritius fund. The ED will also probe if the fund was used as a conduit for round tripping.

The case had come into light when a Delhi-based fund manager filed a complaint with the CBI against MCX.
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