MCX takes action against 7 officials mentioned in PwC report

Report points out lacunae in surveillance mechanism and payment made to bogus entities

Multi Commodities Exchange (MCX) told the commodities derivatives markets regulator Forward Markets Commission on Tuesday it had filed a police complaint against seven officials of MCX named in the PricewaterhouseCoopers (PwC) report. Of the seven, three are with the exchange.

PricewaterhouseCoopers had filed its audit report on April 21. It talked of gaps in the surveillance mechanism of MCX and payments made to bogus entities. Financial Technologies (India) Limited, or FTIL, promoter and anchor investor of MCX, has denied the allegations. But MCX Managing Director Manoj Vaish, who met on Tuesday with FMC officials, is understood to have said the exchange was taking action on the report.

Regulatory sources said the FMC would consider what MCX said and decide its course of action. Earlier, FMC had asked MCX to decide by May 5 on what actions they would be taking on the basis of the report. Meanwhile, FMC told MCX they could, under the new ownership norms announced on Tuesday, extinguish voting rights of FTIL as it had been declared 'not fit and proper'.