MUMBAI, Oct 31 (Reuters) - Jignesh Shah, the founder and
vice chairman of India's Multi Commodity Exchange (MCX)
, has resigned from the board of the exchange he built
from a startup in 2003 into India's biggest commodities bourse.
He said he wanted to avoid any harm to shareholder and
investor interests from the "mud slinging" over allegations
concerning the National Spot Exchange Ltd (NSEL), which his
Financial Technologies (India) Ltd also owns.
The NSEL has been under investigation by police since last
month after India's commodities regulator ordered it to suspend
trading of futures contracts in July over suspected violations
of rules on contract duration.
MCX is 26 percent owned by Financial Technologies, of which
Shah is founder, chairman and CEO. The provider of trading
platforms and related technology also owns the NSEL.
NSEL has said it followed all existing rules.
"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 in a statement.
"I don't want any event or anything to undermine their
(MCX's) 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," he said.
Shah's resignation comes two weeks after MCX CEO Shreekant
NSEL's former chief executive, Anjani Sinha, was arrested
earlier in October and has been in police custody since Oct. 17.
(Reporting by Siddesh Mayenkar and Himank Sharma; Editing by
Tony Munroe and Alison Williams)