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Mumbai: Commodities market regulator Forward Markets Commission on late Friday evening issued a show-cause notice to Financial Technologies (India) Ltd. (FTIL) asking its directors why its directors should be considered “fit and proper" to operate a commodity exchange. FTIL is the owner of beleagured National Spot Exchange Ltd (NSEL), which is in middle of a Rs5,600 crore payment crisis to its investors.

FTIL’s promoter Jignesh Shah and two other directors, Joseph Massey and Shreekant Javalgekar, may be asked to step down as directors if the reply to the notice is found to be unsatisfactory.

Massey and Javelgekar not only hold directorship on MCX and NSEL but also are senior executives on exchanges promoted by FTIL.

FMC has alleged that even though borrowers had defaulted on earlier loans, they were allowed to raise money on the NSEL platform. FMC also said FTIL issued corporate guarantees for these borrowers for getting bank loans. FMC also said that FTIL promoted India Bullion Merchants Association (IBMA) was allowed to trade on NSEL and MCX.

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