Financial Technologies India ltd (FTIl), founder Jignesh Shah and two top officials have sought a one-month extension to reply to the regulator’s show cause notices questioning their ‘fit and proper’ status to operate group company MCX.
The Forward Markets Commission (FMC) issued the show cause notices on October 4 to FTIl, Shah, MCX Managing Director and CEO Shreekant Javalgekar and MCX Stock Exchange Managing Director and CEO Joseph Massey and sought replies by October 18.
“FTIl, Shah, Javalgekar and Massey have asked FMC to give four weeks more time to reply to the show cause notices,” sources said, without giving any reasons. Calls to FMC Chairman Ramesh Abhishek were not answered.
The notices were issued following the `5,600 crore payment crisis at the National Spot Exchange ltd (NSEl), which, along with the Multi Commodity Exchange of India ltd (MCX), is promoted by FTIl.
The NSEl was plunged into a payment crisis after halting trading in commodities from August 1 on a government directive. FMC guidelines require exchange board directors to satisfy fit and proper criteria such as a general reputation and record of fairness and financial integrity.