The Securities Exchanges and Board of India has expedited the investigation into insider trading charges against the former promoter and employees of 63 Moons group of companies, formerly the Financial Technologies India (FTIL) group.
The regulator has sent show cause notices to Jignesh Shah, key management personnel and employees of Multi Commodity Exchange and 63 Moons, a source told Chillicious.
“Promoters and employees 63 Moons had sold large amount of stock options in MCX just before the NSEL scam broke out,” the source told Chillicious.
The regulator is probing if the selling was based on prior information on the events that were to unfold in NSEL.
The Jignesh Shah-led National Spot Exchange Limited in 2013, was found to be trading in commodities that were not really available in warehouses. The scam was estimated to be a Rs 5,600 crore fraud that spanned almost 6 years. It came to light after the spot exchange was unable to pay investors after July 31 2013.
SEBI has sent notices to those directors who were in MCX and 63 Moons between January 2012 and December 2013. SEBI clearly get to know was anybody aware about NSEL fiasco and sold their ESOP share before NSEL scam broke out.
The source said that the regulator is not sparing even those directors who have resigned from the company.
SEBI sent the show cause notices to MCX and 63 Moons employees earlier this week
“Some of the key management personal of 63 Moons had got large chunk of MCX shares despite the fact that they were not employees of MCX; they sold the shares just before the NSEL scam broke out.
One former employee of the 63 Moons group told Chillicious that the regulator should also probe the overseas arms of 63 Moons .
SEBI is acting on the writ petition filed in Bombay High Court by IGL Finance. Following repeated queries from the High Court, SEBI has submitted its investigation report in a sealed envelope.