The CBI has wrapped up its preliminary enquiry against former SEBI chief CB Bhave in connection with the irregularities in the grant of sanction to MCX-SX to function as a stock exchange and may soon decide whether to close it or convert it into a regular case.
Sources said the statements of Bhave and former SEBI member KM Abraham have been recorded and the enquiry has almost been completed, sources said, adding the decision to register a regular case could be taken within a week.
The PE was registered to probe issues of alleged irregularities in granting sanction to the MCX Stock Exchange (MCX-SX) by the Securities and Exchange Board of India (SEBI) in 2008 and renewing its recognition in 2009 and 2010.
The scope of the enquiry was 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 Jignesh Shah-led Financial Technologies India ltd (FTIl) and its commodity exchange arm MCX and began functioning as a full-fledged stock exchange in 2013 after a prolonged battle with SEBI. The exchange was initially granted permission for only a limited segment of currency derivatives in 2008 on the condition that its license should be renewed every year.
SEBI directed MCX-SX last year to restructure its board and governance structure after a payment crisis broke out at the National Spot Exchange ltd (NSEl), also promoted by FTIl.