The settlement crisis at the National Spot Exchange Ltd (NSEL) seems to be impacting the functioning of group companies also. Today, Shreekant Javalgekar, Managing Director and CEO of the Multi-Commodity Exchange, resigned.
The exchange informed the BSE that Javalgekar on Saturday submitted his resignation, which is subject to the approval of the board.
Board meet on tuesday
Without revealing the reason for the exit of Javalgekar, an MCX spokesperson said the board of directors would meet on Tuesday to consider the resignation.
The exit of Javalgekar has left only two promoter-nominees —– Jignesh Shah and Paras Ajmera — on the MCX board.
The Forward Markets Commission, the commodity markets regulator, issued a show-cause notice on October 4 to ascertain the ‘fit and proper’ criteria of Shah, Joseph Massey and Javalgekar. They were given time till October 30 to respond to the notice. Shah and Massey have already resigned from the board of MCX, which is under the direct supervision of the Securities and Exchange Board of India.
The FMC has taken various steps to ring-fence MCX from the Rs 5,600-crore settlement crisis at NSEL. With many shareholder-directors moving out on their own, the FMC has re-jigged the entire MCX board.
It cleared the appointment of four new independent directors, including G. Anantharaman, former SEBI member; Pravir Vohra, ex-chief technology officer of ICICI Bank; Shivendra Tomar, Chief Credit Officer of IFCI, and P. Paramasivam, General Manager of Corporation Bank, for appointment on the MCX board.
Fall in Turnover
Speaking to Business Line recently, Ramesh Abhishek, Chairman, FMC, said turnover at MCX has been falling steadily over the last few months and stern action was necessary to instil confidence among investors in the commodity exchanges.