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The Forward Markets Commission (FMC), which is considering Paul Parambi, head of strategy at Kotak Mahindra Bank, for a board position at the Multi Commodity Exchange (MCX), is likely to give its approval for the appointment soon, say sources. A recommendation to consider Parambi was sent to FMC in September. This followed Kotak Mahindra Bank acquiring 15 per cent stake in MCX for Rs 459 crore in July.
In an email response, a Kotak Mahindra Bank spokesperson said, “According to exchange regulations, shareholders are allowed to have 50 per cent representation on the boards of exchanges. The MCX board already has representation from other shareholders. We have made a submission to the MCX board for the appointment of a nominee director from Kotak Mahindra Bank. We further clarify we have not asked for a second berth on the MCX board nor made a claim for the post of MD & CEO (managing director and CEO) at MCX. The appointment of MD & CEO of MCX is the prerogative of the MCX board. Therefore, this question should be addressed to the MCX board.”
It is the maximum any shareholder can hold in an exchange according to FMC guidelines. Earlier, Financial Technologies was the anchor investor in the exchange with 26%.
Currently, the other shareholders in the exchange are Blackstone GPV Capital Partners Mauritius, Aginyx Enterprises, IFCI and Rakesh Jhunjhunwala.
Currently, the exchange is also looking at appointing an MD & CEO and has appointed a head hunter for the same. The exchange has conveyed to the commodity market regulator that it will appoint an MD & CEO by the end of January.
So far, no recommendations have gone to FMC for the same. The post has been lying vacant since Manoj Vaish left the exchange in May. Currently, P K Singhal is the joint MD of MCX.
MCX sources earlier said that 20 nominees have been lined up for interviews for the position of MD & CEO. Currently, MCX has 11 board of directors with Satyananda Mishra as chairman of the board of the exchange.
Kotak Mahindra and associates are significant shareholders in Business Standard Ltd
