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The board of directors of Multi Commodity Exchange (MCX) met on Friday and cleared amendments to their Articles of Association (AoA), to comply with commodity regulator Forward Markets Commission’s (FMC) new shareholding norms for commodity exchanges.
The alterations were also needed to be in line with the regulator’s order on Financial Technologies’ fitness to be a promoter in the wake of the National Spot Exchange (NSEL) scam; NSEL was anchor investor in both NSEL and MCX had, in December, been declared unfit to run any comex.
FMC had given all comexes 45 days to alter their AoA. MCX will now be able to freeze the voting rights of FTIL at two per cent, in line with FMC’s direction, till such time the promoter is able to divest its stake.
MCX has also accepted the resignation of its managing director, Manoj Vaish, with effect from May 10; he’d taken charge very recently. MCX had earlier said Vaish resigned (he put in his papers on May 1) on health grounds.
The exchange said a committee of senior executives would now manage the daily activities of the exchange under the supervision of the board, till a new MD and chief executive was appointed.
