Jig­nesh Blames Chi­dambaram, Babus for All His Woes

The Economic Times - - Markets: Beating Volatility - Our Bureau Mar­ket In­tel­li­gence

Mum­bai: Jig­nesh Shah, founder of Fi­nan­cial Tech­nolo­gies In­dia—now known as 63 Moons Tech­nolo­gies—de­fended his rel­a­tives and for­mer aso­ci­ates ac­cused by the Se­cu­ri­ties and Ex­change Board of In­dia of in­sider trad­ing. Shah, who was talk­ing to re­porters at a press meet in Mum­bai on Friday, also said an en­quiry should be ini­ti­ated against for­mer fi­nance min­is­ter P Chi­dambaram and some bu­reau­crats for “car­ry­ing out a con­spir­acy against the group”.

Shah and Venkat Chary, chair­man of 63 Moons, said the Sebi order against the 13 in­di­vid­u­als on Au­gust 2 was “un­founded”.

“I have never come to the me­dia in the last four years. But now my fam­ily mem­bers are be­ing at­tacked, that’s why I’m ad­dress­ing you all. No agency has found any­thing against me. I’m stand­ing tall,” Shah said.

Sebi has pe­nalised 13 in­di­vid­u­als for al­leged in­sider trad­ing in shares of MCX and its erst­while pro­moter Fi­nan­cial Tech­nolo­gies. Th­ese in­clude close rel­a­tives of Shah, for­mer se­nior ex­ec­u­tives of the com­pany, and Bharat Sheth, the owner of Great Eastern Ship­ping. The cap­i­tal mar­kets reg­u­la­tor has di­rected to im­pound Rs 126 crore that they gained from trad­ing in th­ese shares.

In two sep­a­rate or­ders re­leased on Wed­nes­day, Sebi said th­ese in­di­vid­u­als, in­clud­ing pro­mot­ers and key man­age­ment per­son­nel, traded in the shares of MCX and FTIL based on un­pub­lished price-sen­si­tive in­for­ma­tion. Th­ese in­di­vid­u­als will have to sub­mit why Sebi should not take ac­tion against HIGHS & LOWS them for al­leged vi­o­la­tion of in­sider trad­ing rules.

Shah said all the pre- and post­com­pli­ance norms have been fol­lowed by all the 13 in­di­vid­u­als. Chary said the 13 in­di­vid­u­als will con­sider mov­ing SAT against the Sebi order. The press meet­ing turned stormy af­ter re­porters sought the rea­sons for the Na­tional Spot Ex­change (NSEL) fi­asco. NSEL, which was owned by Fi­nan­cial Tech­nolo­gies, had failed to pay back in­vestors af­ter the cri­sis erupted that led to Shah, once an emerg­ing star of the In­dian fi­nan­cial ser­vices space, get­ting ousted from the Multi Com­mod­ity Ex­change (MCX) – the coun­try’s first on­line com­mod­ity ex­change. Shah blamed Chi­dambaram and some of the bu­reau­crats for the fi­asco.

“The be­lief in in­sti­tu­tional frame­work is there. But some in­di­vid­u­als have their loy­alty to their po­lit­i­cal mas­ters of the UPA 2. It seems, based on the in­for­ma­tion we have, they are closely work­ing with P Chi­dambaram. This should be in­ves­ti­gated,” Shah said. “I in­vite a pub­lic de­bate by Ramesh Ab­hishek, KP Krishnan and P Chi­dambaram. We are ready.”

Shah al­leged that al­though the gov­ern­ment had asked For­wards Mar­ket Com­mis­sion (for­mer com­modi­ties mar­ket reg­u­la­tor) to solve the pay­ment cri­sis at NSEL, it chose not to do so.

ON THE OF­FEN­SIVE: Jig­nesh Shah

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