Jignesh Shah resigns from MCX board

The founder of Multi-Commodity Exchange (MCX), Jignesh Shah, on Thursday, resigned from its board as non-Executive Vice-Chairman.

The commodity exchange regulator, Forward Markets Commission (FMC), had issued show-cause notices to Mr. Shah; former Managing Director and CEO of MCX Shreekant Javalgekar; and another board member Joseph Massey on October 4, questioning their ‘fit and proper' status to operate MCX.

Mr. Javalgekar and Mr. Massey have already resigned from the MCX board. The MCX was promoted by Jignesh Shah-led Financial Technologies India Ltd (FTIL), which is also promoted the now-defunct National Spot Exchange Ltd (NSEL). On the show-cause notice on ‘fit and proper’, Mr. Shah said: “A detailed reply has been filed, addressing all the concerns raised in the regulator's show-cause notice.”

“The NSEL crisis has destroyed everything that I have worked hard to build over past two decades. My loss is not just financial but what has hurt me and my family most is the concerted effort to destroy my credibility and trust for which I have lived by all my life,” said Mr. Shah in a press release here.

Speaking on MCX, he said “I have worked tirelessly along with my team for creating institutions such as MCX I don’t want any event or anything to undermine their reputation and want to ensure that the shareholder and investor interests are not harmed by the mud-slinging that has been done towards the entire range of institutions.”