FMC accuses 3 directors including Shah for NSEL crisis

The Forward Markets Commission (FMC), in its "fit and proper" showcause states that evidences indicate that NSEL promoter Jignesh Shah knew everything about the National Spot Exchange trouble.  

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NSEL Board, Financial Technologies (FT) management, Indian Bullion Market Association (IBMA) and few borrowers acted in connivance, the report suggests. The default were happening from last 2.5 years and paired contracts since September 2009 but exchange continued to trade with defaulters and provided them with incentives like margin waiver, corporate guarantees from banks.
NSEL's margin money and settlement guarantee fund were being used for its own business needs. In a very serious violation, large sum of money was taken from borrowers to benefit IBMA and a related company where wife of Anjani Sinha (former NSEL CEO and MD) was director.
Therefore, FMC has clearly accused Joseph Massey, CEO and MD of MCX-SX and Shreekant Javalgekar, MCX CEO and MD along with Jignesh Shah of unlawful, irregular and fraudulent activities in NSEL. Now, they have to reply FMC within two weeks post which a final decision on “fit and proper” will be given by FMC