The Enforcement Directorate (ED) is gearing up for the second round of investigation against Financial Technologies India Ltd (FTIL) promoter Jignesh Shah, his relatives and key management officials.
Last week, the ED has communicated with capital market regulator the Securities and Exchange Board of India (SEBI) seeking details of insider trading in shares of MCX and FTIL.
In August first week, SEBI had penalised 13 individuals for alleged inside trading in both MCX and FTIL. SEBI had directed all of them to impound Rs 126 crore that were earned after the trading of these shares.
"At present, the ED have sought specific details from the market regulator i.e. SEBI. Once the examination of these details/data gets over, the agency would begin its probe and start issuing summons to all 13 individuals for recording their statements," the source said.
What was SEBI's order?
Earlier, in two separate orders, SEBI alleged that these individuals including promoters and key management personnel traded in the shares of MCX and FTIL based on unpublished price sensitive information.
As a result, after internal investigation, the regulator directed all of them not to dispose of or alienate any of their assets, properties and securities till the penalty is credited to an escrow account.
The names in the SEBI's order include: Manish Shah (brother of Jignesh Shah), Prakash Shah (father of Jignesh), Paras Ajmera (brother-in-law of Jignesh), Tejal Shah (sister-in-law of Jignesh), Shreekant Javalgekar (MD & CEO of MCX), Asha Shreekant Javalgekar (wife of Shreekant), Hariharan Vaidyalingam (director of FTIL), V Arvindkumar Iyengar (senior VP-technology), Dhanashri Iyengar (wife of Arvind), Bharat Kanaiyalal Sheth (owner of GE Shipping), Anjani Sinha (MD & CEO of NSEL), Hariharan Vaidyalingam (director) and Mehmood Vaid (senior vice president - Sales and Marketing).
However, Shah denied any violation of insider trading norms by current or former executives of his company. He said the trades were not based on unpublished price-sensitive information.
Shah went ahead making counter-allegations that he was being targeted. In fact, made an allegation against former Finance Minister P Chidambaram for playing crucial role in SEBI's order.
With SEBI's fresh order, the enforcement directorate has got another opportunity to investigate and corner Shah, who is already on bail in Rs 5600 crore NSEL Scam case.
Source : http://indiatoday.intoday.in/story/ed-insider-trading-shares-mcx-ftil-sebi/1/1025385.html