MCX-SX terms reports of board members quitting 'speculative'

Says today's board meeting was planned in advance, not an emergency

MCX-SX, in an early morning release today, termed the overnight reports of its board members quitting as 'speculative and pre-emptive'. It further said that its board meeting, scheduled for later today, was planned a month in advance and is not an 'emergency meeting.'

"It would be speculative to pre-empt resignation of all PIDs (public interest directors) and we would request to refrain from rumours and await the announcement post the board meeting. As in the case of other companies, new members would be nominated by shareholders or independent directors would be appointed by the regulator if the need arises," said MCX-SX in a release.

PTI on Thursday had reported that MCX-SX was likely to see resignations of its newly-appointed chairman GK Pillai, along with other public interest directors, following a probe launched by Central Bureau of Investigation (CBI) into the grant of license to the bourse five years ago.

MCX-SX is the newest stock exchange set up by Jignesh Shah-led MCX and Financial Technologies India (FTIL), which is embroiled in the Rs 5,500 crore settlement crisis at the National Spot Exchange (NSEL).

MCX and FTIL own 5% each in MCX-SX and additional warrants, amounting to 69% stake on conversion. MCX-SX claims that its founders are no more the promoter shareholders.

"The exchange has successfully ring-fenced itself from the crisis and is run by a professional management team. FTIL and MCX have been shifted from the category of 'promoter shareholder' to 'public Shareholder'," said the release.

MCX-SX also plans to launch a rights issue at the end of this month for raising capital.

"The rights issue is on track and we have received confirmation from several shareholders for participation. The outcome of the rights issue will be made public upon its completion by end of this month. Meanwhile, we have also received expression of interest from new investors and the exchange could exercise a preferential allotment post the rights issue if it is not entirely subscribed," MCX-SX release added.