Kotak Mahindra withdraws Parambi's nomination to MCX board

Kotak Mahindra Bank today announced temporary withdrawal of the nomination of Paul Parambi to the Board of MCX, without assigning any reason.
"The Bank is announcing the withdrawal, for the time being, of the nomination of Paul Parambi to the Board of MCX," a statement issued here said.
The commodity market regulator, Forward Markets Commission (FMC) had earlier reportedly questioned Kotak Mahindra Bank's claim on board representation in the MCX commodity exchange.
In July, while signing an agreement to buy an MCX stake, at a discount, from Financial Technologies, Kotak Bank had said the deal was just an investment and that it would not seek any "special rights or a board seat".

However, the bank recommended Paul Parambi, Head of Group Strategy, as a nominee on the MCX board last year.
The FMC opined that Bank's nominee on the MCX board can lead to a "conflict of interest" as the bank also owns a 40 per cent stake in the ACE Derivatives and Commodities Exchange.