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MCX Stock Exchange (MCX-SX) has formed a committee to oversee its critical functions, on a directive of the Securities and Exchange Board of India (Sebi).
On Wednesday, while renewing the bourse’s recognition, the market regulator had asked MCX-SX and MCX-SX Clearing Corporation (MCC) to strengthen their governance structure by putting in place an oversight committee within two days. MCC has formed a similar committee to ensure compliance with the Sebi order, which came in the wake of a Rs 5,600-crore payment crisis at group entity National Spot Exchange (NSEL).
The exchange, however, refused to share the names of the committee members.
Sebi had said the committee must have two public interest directors and three nominees from among institutional investors in the exchange. Institutional shareholders in the exchange include several well-known names in the banking sector including HDFC Bank, Axis Bank and State Bank of India, according to the exchange website.
The committee will advise its board and oversee various functions of the exchange, including appointments to key managerial posts, major capital expenditure and facility and infrastructure sharing agreements. Sebi had warned MCX-SX that non-compliance could result in withdrawal of recognition.
MCX-SX is part of the Jignesh Shah-promoted Financial Technologies group, whose commodity segment operations through the NSEL is embroiled in a Rs 5,500-crore payment crises. Investors in NSEL had asked the regulator not to renew the recognition.
