Jignesh Shah to be in police custody till Monday

Mumbai: A CBI-designated court on Wednesday remanded Jignesh Shah, founder of FTIL group, to police custody till September 26. The CBI had sought custody till September 30.

CBI arrested Shah on September 20 for his alleged role in getting extension of approval from Sebi for MCXSX, a group of companies where he was vice-chairman, to offer currency futures trading without conforming to regulatory rules on ownership of a stock exchange and for suppressing material facts from Sebi while getting extension in 2009 and 2010.

FTIL and MCX promoted MCX-SX, now called MSEI, was granted Sebi recognition in 2008. FTIL owned 49% and MCX the rest. This was well in excess of the stipulated 5% for a single owner.

Sebi gave conditional extension to MCX-SX in 2009 and 2010 to run currency futures with the caveat that the promoters must reduce their stake if they intended to launch segments other than currency futures, like an equity platform.