Jignesh Shah, the founder and vice chairman of 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 National Spot Exchange Ltd (NSEL), which along with MCX are promoted by his Financial Technologies (India) Ltd.
NSEL has been under investigation by police since last month after the Forward Markets Commission (FMC) ordered it to suspend trading of futures contracts in July over suspected violations of rules on contract duration.
Mr Shah is also the founder, chairman and CEO of FTIL, which owns a 26 per stake in MCX.
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," Mr 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."
Mr Shah's resignation comes two weeks after that of chief executive Shreekant Javalgekar.
NSEL's former chief executive, Anjani Sinha, was arrested earlier in October and has been in police custody since October 17.
Copyright @ Thomson Reuters 2013
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