Capital market regulator SEBI (Securities and Exchange Board of India) has initiated an investigation into potential listing agreement breach by MCX and FTIL in the backdrop of the PwC audit report on the commodity exchange pointing to various inconsistencies including those pertaining to related party transactions on Monday.

Financial Technologies (India) Ltd (FTIL), is the flagship firm of Jignesh Shah group, is the erstwhile promoter of MCX. Both are listed entities.

Following the Rs 5,600-crore payment crisis at National Spot Exchange Ltd (NSEL), part of Shah group, FTIL as well as other group entities, including MCX have come under the regulatory spotlight.

The probe comes just before PwC's special audit report pointing various irregularities at MCX, including with regard to related party transactions, sources revealed. Among others, the PwC audit divulged that commodity exchange MCX made agreements with related trading parties and paid about Rs 709 crore to FTIL and group firms without following proper documentation process.

Commodity market regulator FMC had appointed PwC in December last year to audit books of MCX, against the backdrop of NSEL payment crisis.