CBI Closure Report Accepted In NSEL Scam Case Against Jignesh Shah

A special court recently accepted the closure report filed by the CBI in a 2018 case involving the NSEL scam-accused Jignesh Shah and others.

The case revolved around allegations of facilitating nationwide exchange status for Multi-Commodity Exchange in 2003, during Shah’s tenure as the managing director.

This development was initially reported by The Times of India.

On Dec. 8, 2023, the same CBI court had granted bail to Shah. The case pertained to accusations of suppressing facts to secure an extension for the MCX-SX stock exchange from the Securities and Exchange Board of India.

The promoters were involved in a share buyback arrangement with Punjab National Bank, IL&FS, and IFCI, violating regulations. The CBI alleged that Shah, in collusion with SEBI officials, concealed this information during the extension process.

The CBI further claimed that SEBI officials deliberately refrained from issuing a notice to cancel the exchange’s recognition in the currency derivatives segment, despite rejecting MCX-SX’s request for trading in other segments.

Vishaka More, the then Assistant General Manager of SEBI; Rajkumar Dangeti, then Deputy General Manager; and Muralidhar Rao, the Chief General Manager at the markets regulator, were named as accused but were not arrested.