FMC starts taking control over MCX board

The Forward Markets Commission has begun taking control of the MCX board. CNBC-TV18 was the first to report that the Financial Technologies Group's representation on MCX board was likely to fall to one from current four members, reports Varinder Bansal.

Also Read: Sebi rejigs MCX-SX board; Shah, Massey step down

Joseph Massey, the Chief Executive Officer and Managing Director of MCX Stock Exchange, has decided to withdraw his request for re-appointment as a director on MCX board. The MCX board has also appointed RM Premkumar, FMC nominated director as interim chairman. This clearly means that FMC has taken broader charge of the MCX board.

A look at the new board will tell you that four out of the eight board members are FMC nominated. But it is expected that Financial Technologies will be left with only one member on the board. Paras Ajmera - Non-Executive Director, FTIL Nominee or Jignesh P. Shah - Non-Executive Vice Chairman may not opt for re-appointment. But this will only be clear next week.

In another development, FMC has also sent showcause notice to Shreekant Javalgekar - Managing Director & CEO around one month back and will be replying by next week.
 
So, with a lot of puzzles playing around, final clarity will emerge only by next week, but it is certain that FMC is leaving no stone unturned to give more powers to institutions and executive directors and not keep control with anchor investors.
 
Current Board of Directors
 
RM Premkumar - Independent Director, FMC Nominated
Ravi Kamal Bhargava - Independent Director, FMC Nominated
Dinesh Kumar Mehrotra - Independent Director, FMC Nominated
Santosh Kumar Mohanty - Independent Director, FMC Nominated
P Satish - Independent Director, NABARD Nominee
Jignesh P Shah - Non-Executive Vice Chairman
Paras Ajmera - Non-Executive Director, FTIL Nominee
Shreekant Javalgekar - Managing Director & CEO