After strictures passed by Forward Markets Commission (FMC) against Jignesh Shah as well as FTIL, power sector watchdog CERC is likely to soon take a call on the IEX.
FMC, the regulator for commodities market, has ruled that Shah and his flagship firm FTIL are not "fit and proper" to run any exchange amid the continuing NSEL payment crisis.
The National Spot Exchange Ltd (NSEL), promoted by FTIL, is embroiled in a Rs 5,500 crore payment turmoil and is under the scanner of multiple agencies.
FTIL was the founder and promoter of Indian Energy Exchange (IEX), the country's premier power bourse.
Shah was instrumental in setting up the country's first power exchange IEX -- continues to remain as its non-executive director.
On Wednesday, the Forward Markets Commission said that Shah and FTIL are not "fit and proper" to run any exchange in the country besides charging him of being the "highest beneficiary" in the NSEL scam.
FTIL currently has 26 percent stake in MCX, country's largest commodity exchange and will need to cut its stake following the FMC order.
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