The crisis-ridden Financial Technologies Group will soon begin searching for a new Managing Director and Chief Executive Officer to head Multi Commodity Exchange.
The board will meet on Tuesday to consider the resignation of Shreekant Javalgekar, who quit as Managing Director & CEO on Saturday.
Forward Markets Commission, the commodity market regulator, is keen on replacing the management at the exchange as it recently found Group companies and promoter-related members were allowed to trade on the exchange platform.
The Forward Contract Regulation Act bars promoters and group companies from trading on their own exchange platform.
The Commission has already appointed eight independent directors on the MCX board, which also includes one nominee each from Nabard and Financial Technologies besides Jignesh Shah, who is the non-Executive Vice-Chairman.
“In consultation with FMC, the exchange will soon issue advertisements to recruit an outsider as the new MD,” a source said.
MCX is the largest commodity exchange in India, with 87 per cent of the total commodity futures turnover.
On Monday, another group company, MCX Stock Exchange, issued advertisements seeking applications for the post of Managing Director and CEO after its former head Joseph Massey put in his papers earlier this month.
U. Venkataraman, Whole-time Director assisting the special committee of public interest directors, is currently overseeing the functioning of the exchange.
Massey is being investigated by the Economic Offences Wing of the Mumbai police in the Rs 5,600-crore settlement crisis at NSEL.
Capital markets regulator Securities and Exchange Board of India recently renewed the exchange’s licence with the rider that the exchange strengthen its governance structure.