In India, shares and securities are held electronically in a dematerialized (or “Demat”) account, instead of the investor taking physical possession of certificates.
The Directorate of Enforcement, Mumbai has also requested both the depositories to provide the present status of the demat account of FTIL.
The company said it is taking appropriate steps in consultation with the legal counsel of the company.
This move is a follow up of the arrest of Financial Technologies India Ltd’s founder Jignesh Shah by the Central Bureau of Investigation (CBI) last week in a case relating to the grant of recognition for MCX Stock Exchange (MCX-SX) in 2008.
Financial Technologies Group, founded by Jignesh Shah in 1988, offers technology IP to create and trade on financial markets, across asset classes including equities, commodities, currencies and bonds among others.
FTIL was held not ‘fit and proper’ by the forward market commission and its role in its 99.999% subsidiary NSEL (National Spot Exchange Ltd) was questioned.