MCX says 3 officials cease to be directors as per new FMC norms

Complying with the latest norms from the Forward Markets Commission (FMC) on appointment of directors on boards of stock exchanges, Multi Commodity Exchange (MCX) said on Thursday that only one official is eligible to remain as director, while three others cease to exist.

"FMC vide its letter dated August 29, 2013 has directed that due to the conditions/criteria contained in the revised guidelines, Venkat Chary, C M Maniar and Shvetal Vakil shall not be eligible to continue as directors of the company," MCX said in its revised notice for its annual general meeting (AGM) to be held on September 30.

Accordingly, Mr Chary, Mr Maniar and Mr Vakil cease to be MCX directors with effect from August 31, the bourse said in the notice filed before the BSE.

However, another director Joseph Massey is eligible as per the FMC norms, it said.

MCX said that Mr Massey, who retires by rotation and being eligible, has offered himself for re-appointment. This resolution will be taken at the forthcoming AGM.

On August 12, commodity market regulator Forward Markets Commission (FMC) revised the guidelines for constitution of the board of directors for better corporate governance practice.

As per the new norms, commodity exchanges' boards should have independent directors not less than 50 per cent of the strength of the board. Four independent directors should be appointed by the FMC and the rest by the bourse with prior approval from the regulator.

The remaining posts may comprise of shareholder directors, whereas the post of managing director should not be included in the category of independent directors or shareholder directors, but should be an ex-officio director of the board instead.

The chairperson of the board of directors should be an independent director appointed by the FMC. The persons to be appointed as directors should satisfy the criteria of "fit and proper person".

Shares in MCX, on Thursday, ended at Rs 430.95 on the BSE, up 4.99 per cent from the previous close.