Shah, Massey step down from MCX-SX board

Move comes after FMC said to have sent show-cause notice to Financial Technologies group

Vice-Chairman Jignesh Shah and Managing Director & CEO Joseph Massey have stepped down from the board of MCX Stock Exchange.

Meanwhile, the exchange said in an announcement the Securities and Exchange Board of India had, through a letter dated October 8, nominated former LIC head, Thomas Mathew T, as MCX-SX’s public interest director.

The move is understood to have come after the Forward Markets Commission sent a showcause notice to the Financial Technologies group, questioning its ‘fit and proper’ status to act as the promoter of National Spot Exchange Ltd after a Rs 5,600-crore payment crisis, punctuated with allegations of fraud and mismanagement, at the bourse.

It’s believed Shah and Massey resigned after the MCX-SX board, at an extraordinary general meeting on Tuesday, raised questions on their continuing on the stock exchange’s board, as they were associated with NSEL. The exchange did not immediately respond to a request for comment.

Earlier, while renewing the exchange’s licence in September, Sebi had asked for formation of an oversight committee. It had also said any adverse finding by other regulators could also result in withdrawal of its licence.

Now, U Venkataraman, the lone shareholder director on the board of the exchange, will assist a special committee of public interest directors in carrying out the functions of the exchange, according to the statement. According to the exchange’s website, S U Kamdar, Ashima Goyal and D R Dogra are the other board members — all of them public interest directors.

IN A SPOT

* FMC may have sent a showcause notice to the FT group, questioning its ‘fit and proper’ status to be NSEL promoter

* MCX-SX board members are said to have questioned Shah and Massey continuing on the board at an AGM

* Sebi had earlier sought formation of an oversight panel while renewing the exchange’s licence in September