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The CBI on Thursday registered a preliminary enquiry against former SEBI Chairman CB Bhave, former SEBI member KM Abraham, and the Jignesh Shah-founded FTIL and MCX, among others.
According to the CBI, the enquiry was registered on issues of alleged irregularities in granting sanction to MCX Stock Exchange (MCX-SX) by the Securities and Exchange Board of India in 2008 and renewing the recognition in 2009 and 2010.
The probe by the CBI is to ascertain how MCX-SX was granted permission despite opposition by SEBI when Bhave was head of the regulatory authority.
MCX-SX was set up by the Shah-led Financial Technologies India Ltd (FTIL), and its commodity exchange arm MCX. It began functioning as a full-fledged stock exchange last year, after a prolonged battle with SEBI.
An FTIL spokesperson told PTI: “We will provide full cooperation to the authorities.” Bhave and Abraham could not be immediately contacted.
The exchange was initially granted permission for only a limited segment of currency derivatives, in 2008, on the condition its licence would require approval every year.
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