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FTIL case: Sebi revokes interim order against 8 individuals

twitter-logo PTI        Last Updated: January 31, 2018  | 22:12 IST

New Delhi, Jan 31 (PTI) Sebi today revoked an interim order passed against eight individuals in the matter of Financial Technologies, now known as 63 Moons Technologies, after finding no evidence of insider trading allegations.

The eight individuals are former MCX CEO Shreekant Javalgekar and his wife Asha, FTIL founder Jignesh Shahs brother Manish Shah and father Prakash Shah, former director at NSEL Hariharan Vaidyalingam, another FTIL employee V Arvindkumar Iyengar and his wife Dhanashri, and Bharat Kanaiyalal Sheth, brother of former FTIL director Ravi Sheth.

It was alleged that these entities traded shares of erstwhile Financial Technologies (India) Ltd while in possession of unpublished price sensitive information (UPSI) about NSEL, thereby violating insider trading norms.

NSEL had to suspend trading on July 31, 2013 after a major payment crisis broke out at the bourse. Subsequently, a number of regulators and enforcement agencies launched their probes into the case.

The National Spot Exchange Ltd (NSEL) was promoted by FTIL, which is now known as 63 Moons Technologies Ltd.

Following an inspection of trading in shares of Financial Technologies (India) Ltd for the period April 27, 2012 to July 31, 2013, Sebi had passed an interim order against the eight individuals on August 2, 2017.

By way of the order, the watchdog had directed impounding of losses from them for alleged insider trading activities. Besides, they were asked not to dispose of any of their assets till the individual amount of loss averted is credited to an escrow account.

Sebi Whole Time Member Madhabi Puri Buch today said the interim order passed in August 2017 against the eight individuals is being disposed of, since the allegation of violation of insider trading norms could not be established.

While directions issued against Hariharan Vaidyalingam in the matter of FTIL are being revoked, Sebi today said proceedings against him in the matter of Multi Commodity Exchange of India are still pending.

"Thus, it is clarified that the revocation of directions against Hariharan Vaidyalingam in this order shall not in any manner affect the continuance of directions issued against him vide the said order dated August 2, 2017 in the matter of Multi Commodity Exchange of India," the latest order said.

On Tuesday, Sebi disposed of show cause notices against four individuals as alleged violation of insider trading in the shares of Multi Commodity Exchange could not be established. They were former NSEL CEO Anjani Sinha, ex- director Paras Ajmera, Tejal Shah (FTIL director and relative of Jignesh Shah) and Mehmood Vaid (a senior vice president at FTIL).

This followed Sebi, earlier this month, revoking interim orders against seven individuals, including these four, after alleged violation of some other provision of insider trading rules could not be proved.

Through two separate orders in August 2017, Sebi had impounded averted losses totalling Rs 125 crore through alleged insider trading in MCX and its erstwhile promoter FTIL by 13 persons, with prior information about the NSEL case. PTI RAM ABM

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