(MENAFN - Arab News) Mumbai: the head of india's financial technologies which owns a commodities exchange appeared in court on thursday over a multi-million-dollar fraud allegedly committed at the bourse an officer said.
financial technologies chairman jignesh shah was arrested late wednesday over the alleged fraud news that sent the company's shares plummeting five percent on the bombay stock exchange.
shah has been under investigation since the national spot exchange (nsel) in mumbai owned by his company suddenly suspended trade in most of its commodities contracts at the end of july last year.
the commodities regulator claimed a 56-billion-rupee (933-million) fraud had been committed after the exchange defaulted on dues to investors because it did not have enough collateral.
'jignesh shah has been arrested along with shreekant javalgekar on the basis of our investigations and the fir (first information report) in the nsel case" said rajvardhan sinha chief of mumbai police's economic offenses wing. 'we have produced them in court today and ask for remand" sinha told afp.
police are seeking remand so that they can question shah in custody over the alleged fraud.
javalgekar reportedly one of shah's trusted aides headed a different bourse the multi commodity exchange (mcx) also owned by financial technologies until his resignation last october.
financial technologies which also sells trading software confirmed shah's arrest in a single line statement to the bombay stock exchange on thursday.