MCX case: CBI examines ex-Sebi chairman Bhave

Central Bureau of Investigation of India (CBI) on Monday quizzed former Securities Exchange Board of India (SEBI) chairman CB Bhave in connection with granting sanction to Jignesh Shah-founded Financial Technologies (India) and MCX to function as a full-fledged private stock exchange.

Bhave was examined in Bangalore by a team of CBI officers two months after the agency registered a Preliminary Enquiry (PE) against him, another former member K M Abraham and FTIL and MCX, among others.

The PE was registered on issues of alleged irregularities in granting sanction to the MCX Stock Exchange (MCX-SX) by SEBI in 2008 and renewing the recognition in 2009 and 2010.

The examination of Bhave was to ascertain how MCX-SX was granted permission despite opposition by SEBI when he was head of the regulatory authority. His examination comes barely three days after Abraham was examined by the CBI last Friday.

Efforts to seek a reaction from Bhave, an IAS officer of 1975 batch from Maharashtra cadre, were not successful. A caller at his residence said that he was in office and refused to share his mobile number.