The Central Bureau of Investigation (CBI) registered a case against Financial Technologies (India) Limited (FTIL) promoter Jignesh Shah and Securities and Exchange Board of India (Sebi) officials and its former executive director JN Gupta on Monday for allegedly violating law to grant extension to MCX-SX and FTIL as a private stock exchange after probing the matter for nearly five months.
The CBI in its first information report (FIR) has charged Gupta, current executive director SV Muralidhar Rao, deputy general manager (GM) Rajesh Dangeti and assistant GM Vishakha More, FTIL and MCX, with cheating, criminal conspiracy and abuse of official positions.
More, who received the best employee award by the Union ministry of social justice and empowerment from President Pranab Mukherjee last year, had surprised many in Sebi as she is visually impaired.
Forty-two-year-old More has been using two softwares - JAWS (Job Access With Speech) and OCRS (Optical Character Recognition Software) - to read files and emails while her notes and markers are in Braille.
CBI officials said they would probe whether she was misled by her colleagues whose help she used to take in case any note was handwritten.
The CBI has registered the case under Sections 120-B (criminal conspiracy) and 420 (cheating) of the Indian Penal Code. The agency has also accused them under Sections 13(2) and 13(1) (d) (iii) of Prevention of Corruption Act, 1988 (while holding office as a public servant, obtains for any person any valuable thing or pecuniary advantage without any public interest).
The CBI has also recommended departmental action against former Sebi chairman CB Bhave and ex-member KM Abraham as there was not enough evidence against the duo to prosecute them in a court.
The CBI alleged that Shah had entered into a buy-back arrangement with a nationalised bank in violation of Securities Contract Regulation Act, 1956, and Securities Contract (Regulation) (Manner of Increasing and Maintaining Public Shareholdings in Recognized Stock Exchanges) Regulation, 2006.
The accused allegedly in connivance with Sebi officials deliberately suppressed this fact while applying for extension of recognition of the stock exchange to conduct trade in currency derivatives, and fraudulently obtained the extension of recognition of the exchange in 2009 by cheating Sebi.