Sebi adjourns hearing on FTIL issue to Feb 12

Sebi officials could not be reached for comments.  The market regulator had issued notices to FTIL and others soon after FMC on December 18 had said the Group, its promoter Shah as well as senior executive Joseph Massey were not “fit and proper” to run any exchange.  

The indictment came following a probe the FMC had conducted into the Rs 5,600-crore scam at the Group-promoted spot exchange NSEL, shut since July 30 when trading in unlicensed forward instruments came to light.  

The FTIL Group will have to reduce its shareholding in stock exchange MCX-SX substantially if Sebi, too, declares the Group and the promoter not ‘fit and proper' to run bourses.  The Sebi notice asked FTIL to explain why it should not be directed to divest its equity holdings and warrants in MCX-SX.

In its reply, the company said the regulator should wait till the matter is disposed by the High Court.