FMC asks MCX to clarify on MD's appointment

Exchange announced a month ago selecting Balasubramaniam Venkatraman as MD

The Forward Markets Commission (FMC) has sought clarification from the Multi Commodity Exchange (MCX) on the proposal to appoint Balasubramaniam Venkataramani as managing director and chief executive officer.

The exchange had announced Venkataramani’s appointment about a month ago and had forwarded his name to the commodities markets regulator for approval.

The FMC has now sought details such as whether the appointment complies with Clause 5.6 of the directives issued by the regulator on June 11, 2014, regarding the management of national commodities exchanges.

The clause deals with the procedures to be followed while appointing managing director of exchanges, such as issuing advertisements inviting applications.

Venkataramani’s appointment was made by a headhunting agency appointed by MCX. According to sources, the FMC has also sought to know if the headhunting agency’s processes were in line with the norms.

Venkataramani works with the BSE as chief business officer. The appointment is crucial for MCX, which has been working without a managing director for almost 10 months. The previous managing director resigned and left the organisation after a short stint of four months.