Jignesh Blames Chidambaram, Babus for All His Woes
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said these individuals, including promoters and key management personnel, traded in the shares of MCX and FTIL based on unpublished price-sensitive information.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