SEBI has revoked its investigation for the alleged violation of insider trading rules by the seven former executives of MCX. In 2017, SEBI had passed an interim order impounding averted the loss of more than Rs. 125 crore. The regulator alleged insider trading in shares of MCX and its erstwhile promoter FTIL by 13 people. The list of 13 persons includes the relatives of Jignesh Shah and other former top MCX executives. The regulator has also given the prior information about the NSEL case, which could be included in eight persons accused of insider trading in MCX shares.
On July 31, 2013, the National Spot Exchange Limited that was supported by the Financial Technologies India Limited had been suspended after a major payment crisis broke out at the bourse. A number of regulators and enforcement agencies also launched their probes into the NSEL case. In its final order, SEBI has now ordered its directions against seven persons, which also include two former Chief Executive officers Joseph Massey and Shreekant Javalgekar. These two CEOs also faced actions for alleged insider trading in MCX shares. SEBI passed a separate order in respect of Hariharan Vaidyalingam (a former director at NSEL), who was the eighth person to face Sebi’s interim action in MCX matter.
SEBI, the Indian regulator has passed 2 separate orders, in which it stated that its investigations into alleged insider trading in shares of MCX and the FTIL, which has now changed its name to 63 Moons Technologies limited, they identified that 13 persons traded in these stocks when they were in possession of unpublished price sensitive information. The regulator has also stated that these persons were able to avoid any potential loss in MCX and FTIL shares. It was necessary to take steps for retaining the loss averted by them. The orders against Shreekant’s wife Asha Javalgeker and other NSEL CEO Anjani Sinha and Mehmood Vaid have also been revoked. The charges could not be established against Macey and Vaid.