Jignesh Shah quits MCX, says NSEL crisis destroyed 'everything'

Jignesh Shah, who is embroiled in the Rs 5,600-crore payment imbroglio at National Spot Exchange (NSEL), has resigned as Non-Executive Vice Chairman of Multi Commodity Exchange (MCX) and said this crisis has destroyed "everything" he has worked for all his life.

Shah has resigned from the company with immediate effect, MCX said in a filing to the Bombay Stock Exchange.

"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," Shah said.

The resignation comes weeks after sector regulator Forward Markets Commission (FMC) issued notice to Shah and Financial Technologies India (FTIL), which is the promoter of MCX, India's largest commodity exchange, as well as NSEL, to prove them being 'fit and proper' to manage the exchange.

FMC issued 'fit and proper' notices following the Rs 5,600 crore payment crisis at the NSEL after the exchange halted trading in commodities from July 31 on a government directive.

In the MCX board meeting held on October 22, Jignesh Shah managed to retain his position on the board. He had sought more time from the baord to step down. The board has accepted and supported his request till the time the market regulator decides on 'fit and proper status' of Shah, sources had said.

MCX MD Shreekant Javalgekar had also resigned from the company.

On FMC's fit and proper notice, Shah said in a statement that "a detailed reply has been filed addressing all the concerns raised in the regulator's show cause notice."

On MCX, Shah said that he has worked tirelessly along with his 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 that have been created by the Group," Shah said.