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In its order, FMC, which went into the running of the National Spot Exchange Ltd (NSEL) following the payment default of Rs 5,600 crore to investors, said Shah was “practically the highest beneficiary of the fraud perpetrated at the NSEL”.
Massey was denied the “fit and proper” status as he was on the board of directors since the inception of NSEL. He was also held responsible for the poor governance, fraudulent activities and mismanagement there, and for not making any efforts to improve the management of the spot exchange. And, FMC said, Javalgekar was aware of the state of affairs in NSEL.
FT has already asked the HC to quash the FMC order, which held the entity, too, was not “fit and proper” to hold anything more than two per cent shareholding in MCX. FTIL holds 26 per cent stake in MCX.
