Comply with FMC order, MCX board to tell promoter

Regulator also charged Shah with being the 'highest beneficiary of the fraud perpetrated' at NSEL

The board of directors of India’s largest commodity exchange, the Multi Commodity Exchange (MCX), will write to its promoter, Financial Technologies India Limited (FTIL), to comply with the order of the Forward Markets Commission (FMC) within one month, an exchange source said. Also, the board will ask FTIL to withdraw its nominee, Miten Mehta, from the MCX board in view of FMC’s letter on Thursday.

The FMC had declared that FTIL, Jignesh Shah and his two trusted colleagues Joseph Massey and Shreekant Javalgekar were not “fit and proper” to run an exchange. FTIL will have to reduce its stake to two per cent of the paid-up equity capital of the exchange from the existing 26 per cent stake as an anchor investor. FTIL and Jignesh Shah have challenged the FMC order in the Bombay High Court. The court is scheduled to hear the case on January 16.

The MCX board will meet on January 6 to take a final decision on the appointment of managing director (MD) and chief executive officer (CEO). The posts fell vacant after Javalgekar resigned a few weeks ago.