The Forward Markets Commission (FMC) has appointed a new managing director (MD) for the Ahmedabad-based National Multi Commodity Exchange (NMCE).
This follows the decision of the Supreme Court on Thursday to set aside NMCE’s appeal for a stay on the Gujarat high court order dated February 7.
Officials close to the development said the new MD is K R Nair, one of the independent directors serving on the board of NMCE. Now, FMC also proposes to file a special leave petition (SLP) in the Supreme Court challenging the Gujarat high court order. Before appointing a new MD, Anil Mishra was the MD of NMCE.
NMCE did not reply to an email query sent by Business Standard.
The high court order had directed NMCE to appoint a new managing director within seven days of its order, while quashing the order passed by FMC against the promoter of the exchange, Kailash Gupta, in 2011. Following this, NMCE had filed an SLP with the Supreme Court, seeking a stay on the decision. While the SC has now set aside the appeal for stay, it has postponed further hearing to February 23.
Last week, a bench of the Gujarat high court of judges V N Sahai and A J Desai had set aside the FMC order.
Nair is presently a public interest director appointed by the Securities and Exchange Board of India on the board of Inter Connected Exchange of India and is chairman of the board. He is also associated with IILM Institute of Higher Education as advisor for Government of India-sponsored training programs for IAS and IPS officers.
On October 20, 2011, the court had stayed a part of FMC’s order; quashing the short span of three months given to reduce the stake of Neptune Overseas Ltd (NOL), the promoter of NMCE, to two per cent from the existing 30.2 per cent. FMC’s order dated July 23, 2011 held Gupta guilty of abusing his executive fiduciary position, as MD and later as executive vice-chairman of NMCE, causing illegal monetary benefit to companies controlled by him and his close relatives, at the expense of the exchange. FMC had declared him ‘not fit and proper’ to hold any position in the management and the board. FMC had further ordered that no company controlled by him, directly or indirectly, including NOL, shall hold shares in the bourse in excess of two per cent of the total capital issued on the exchange.
