MCX board approves appointment of 5 new directors

Multi Commodity Exchange (MCX), promoted by Jignesh Shah-led Financial Technologies (India) Ltd, on Wednesday announced appointment of two independent directors and three shareholder directors to run the bourse, amid the continuing Rs 5,600 crore payment crisis at group firm National Spot Exchange Ltd (NSEL).

MCX promoter and non-executive vice chairman Jignesh Shah has managed to retain his position on the board in a crucial board meeting held in Mumbai on Tuesday, according to sources.

The move comes in the backdrop of commodities market regulator FMC issuing a show cause notices on October 4 to FTIL and Mr Shah among others questioning their 'fit and proper' status to operate group company MCX.

The board at its meeting held on October 22 approved the said appointments, MCX said in a filing to the BSE.

The shareholder directors are K N Raghunathan, general manager of treasury at Union Bank of India, Sanjaya Agarwal, general manager of treasury and investments at Bank of Baroda, and P Paramasivam, general manager of Corporation Bank.

Moreover, G Ananth Raman has been appointed as independent director on the board of the company for a period up to June 20, 2014. Pravir Vohra has also been inducted as an independent director for a period up to March 31, 2016.

The board has accepted the resignation of Shreekant Javalgekar as managing director and CEO of the company with immediate effect, and Parveen Kumar Singhal, deputy managing director (non-board), has been directed to take care of the day-to-day affairs of the exchange until a new incumbent is appointed as MD and CEO.

Sources had said on Tuesday that Mr Shah managed to convince the MCX board and will continue to stay on for now as he had sought more time to step down.

The board has accepted his request till the time the market regulator FMC decides on the 'fit and proper status' of Mr Shah, the sources had said.

The market was anticipating Mr Shah's resignation against the backdrop of the payment crisis in the NSEL.

A fortnight ago, MCX promoter Jignesh Shah and Joseph Massey were forced to opt out from the board of the stock exchange arm of the FTIL, MCX-SX. Mr Massey was a managing director of the stock exchange. Mr Javalgekar had resigned last week.