Multi Commodity Exchange (MCX), the country's largest commodity futures bourse, has appointed Manoj Vaish as the new managing director and chief executive officer. The development led to the shares of MCX surging 17.29% on Friday to close at R572.65.
According to a stock exchange announcement, the appointment of Vaish as the top officer of the exchange will be for three years and subject to approval by the Forward Markets Commission (FMC) According to reports, Vaish was selected after a six-hour long board meeting on Thursday. Vaish is currently the managing director of NSDL Database Management. He was earlier an executive director of BSE between 1998 and 2004 and chief executive of financial services research firm Dun & Bradstreet.
The appointment was necessitated after the resignation of Shreekant Javalgekar, who stepped down late last year amid the regulatory probe in the R5,600-crore settlement crisis at the National Spot Exchange (NSEL). NSEL is a subsidiary of Financial Technologies (India) (FTIL), which also owns 26% of MCX.
In an order on December 17, the FMC said Javalgekar, along with Jignesh Shah and Joseph Massey, are not ‘fit & proper’ to be directors in any exchange. It said FTIL cannot act as an anchor investor in the exchange and so has to cut its stake in MCX from the current 26% to 2%.
MCX-SX board okays rights issue
The board of directors of MCX Stock Exchange (MCX-SX) has given an in-principle approval to make a rights issue in the ratio of 1:1. According to a statement issued by the exchange, the board will meet representatives of the institutional shareholders on January 13 to obtain their concurrence on the proposal, after which the formal steps for the rights issue will be initiated.
The board also asked the management to present a concrete proposal for restructuring of the liquidity enhancement schemes so as to attract sustainable liquidity and optimise payouts. Further, the board has authorised the formation of a team from the exchange for reviewing and renegotiating the existing contracts and agreements.