Jignesh Shah, Joseph Massey resign from MCX-SX board * Move comes after FMC said to have sent show-cause notice to Financial Technologies group Vice-Chairman Jignesh Shah and Managing Director and chief executive officer Joseph Massey have stepped down from the board of MCX Stock Exchange. Meanwhile, the the Securities and Exchange board of India has nominated Thomas Mathew T, former head of the Life Insurance Corporation of India as Public Interest Director of MCX-SX through a letter dated October 8, 2013 said the exchange in an announcement. The move comes after the Forward Markets Commission is said to have sent a show cause notice to the Financial Technologies group questioning whether it is a ‘fit and proper’ entity to act as the promoter of the National Spot Exchange following a Rs.5600 crore settlement crises punctuated with allegations of fraud and mismanagement. An Extraordinary General Meeting or EGM of the board is said to have taken place on Tuesday. Members of the board are said to have raised the issue of Shah and Massey continuing on the board of MCX-SX on account of their association with NSEL, leading to their resignation. The exchange did not immediately respond to a request for further comment. The stock market regulator had earlier asked for the formation of an oversight committee for the exchange while renewing its license in September. It had also said that any adverse finding by other regulators could result in withdrawal of the license. U Venkataraman is the only shareholder director now present on the board of the exchange. He will assist a Special Committee of Public Interest Directors in carrying out the functions of the Exchange, according to the statement. S U Kamdar, Ashima Goyal and D.R. Dogra are the other members of the board-all of whom are public interest directors, according to the exchange website. The promoters of MCX SX had earlier been asked to bring their shareholding down to five% by January 2014.
Posted on: Wed, 09 Oct 2013 15:50:37 +0000
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