FMC rejects MCX proposal to appoint Bala as MD

MCX may have to again invite fresh applications for the post

Commodity derivatives markets regulator Forward Markets Commission (FMC) on Friday rejected the proposal of the Multi Commodity Exchange (MCX) to appoint Balasubramaniam Venkataramani as its managing director and chief executive officer (MD & CEO). MCX said this in a filing to the BSE on Friday.

The filing doesn’t give any reason why the regulator rejected the appointment, but sources said proper procedure was not followed in appointing Balasubramaniam, who is at present with the BSE.  MCX will have to again invite fresh applications for the post, sources said.

Selecting an MD has become a tough task for the country’s leading commodity exchange and only listed bourse since its erstwhile promoter, Financial Technologies (FTIL), gave up control. The MD appointed by FTIL resigned in late 2013.

Then for three months Manoj Vish was appointed MD; he resigned in April 2014. Since the past over one year, the exchange has been headless with P K Singhal holding charge as joint MD.

Last December, MCX had recommended Balasubramaniam for the post. But before that, applications had been invited thrice. In last round, which took place after exit of FTIL as shareholder, head-hunting firm Spencer and Stuart was appointed to identify the candidate; however after MCX submitted its recommendation to the FMC, the regulator sought details to find out whether proper procedures were followed or not.  

On Friday, the regulator issued a communication to the exchange that the recommendation hadn't been accepted and the exchange has to invite fresh applications again.