The Telegraph
Friday , May 9 , 2014
CIMA Gallary

Financial Tech rejigs board

Chary: New role

Mumbai, May 8: Financial Technologies India Ltd (FTIL) today elevated Venkat K. Chary as the non-executive chairman of its board.

The development came after the arrest of FTIL’s promoter Jignesh Shah yesterday by Mumbai police for his alleged role in the Rs 5,600-crore National Spot Exchange Ltd (NSEL) scam.

In a hurriedly called board meeting today, the company decided to appoint Venkat Chary, who is already an independent director, as chairman.

The board also approved the handing over of powers to two whole-time directors to manage the company’s day-to-day affairs, the company said without naming them.

The company said it was distressed at the arrest of its chairman and managing director Jignesh Shah by the police despite his full co-operation, not only with the police but also with all other authorities, ever since the NSEL crisis surfaced in August 2013.

“The company has full faith in the judicial system and is confident that justice will be done. The company will continue to extend its full co-operation and support to all the authorities,” FTIL said.

The board will meet again on May 10 to take stock of the divestment in MCX.

“The board would like to assure all the customers, employees, shareholders and stakeholders that the functioning of the company shall be carried out as business as usual and the interest of all shall be duly protected,” the statement said.

Jignesh in police custody

A court here today remanded Jignesh Shah and former managing director and chief executive of MCX Shreekant Javalgekar in police custody till May 15 in connection with the NSEL scam.

The economic offences wing (EOW) of the Mumbai police, which arrested Shah and Javalgekar yesterday, told the sessions court that Shah was the “financial controller” of FTIL and there was a huge transfer of funds from NSEL to FTIL. Profits of NSEL were siphoned off so that FTIL may benefit, it said.

Shah had in the past blamed Anjani Sinha, former chief executive of NSEL, for the scam and feigned ignorance, it added. The investigating agency also told the court that it wanted to unravel the entire chain of events in the scam by interrogating Shah and Javalgekar.

Shah’s lawyer, advocate Mahesh Jethmalani, said the FIR was registered last year and Shah had visited the EOW office 21 times to record his statement. The EOW had said Shah was co-operating with the probe contrary to its present claim, he said.