Mrugank Paranjape: Capital market expert set to run MCX

Mrugank Paranjape, 49, is taking charge as managing director and chief executive of the country’s largest commodity derivatives bourse, the Multi Commodity Exchange (MCX), from Monday.

MCX gets a fulltime MD after two years. One incumbent quit in October 2013 and another quite in April 2014, three months into the job, on health grounds. Since then, P K Singhal was steering the exchange, as the seniormost, through a troubled phase.

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Mrugank has spent over a quarter of a century in financial services. A large part of his career was with Deutsche Bank, handling custodian business in Asia and much more. He is an IIT and IIM graduate, and has dealt with the regulators of several countries.

“After over a quarter century of experience in managing and developing businesses, one would want to be part of public infrastructure and MCX suits all that is needed, being an exchange with a front-end regulator, it is listed and has to take care of shareholders' interests, while growing with those who are dealing with the exchange, that is market participants,” he said.

Even in troubled times, he said, the exchange had protected its market share and he is taking up this challenge as industry veterans like Singhal and other subject experts are there in the exchange to guide him. Now, regulatory integration is happening and opportunities and competition are both set to grow in the exchanges’ space. “This is the best time, I thought, for me to join MCX,” he said.

However regarding upcoming competition (when equity exchanges may start commodity derivatives and commodity exchanges could venture in to their strong holds), he is of the view that one needs to pick up battles correctly. He is equally aware of the opportunities coming up for the exchange when new products and new participants are allowed by the sebi.

Commodity derivatives market is at present in a consolidation phase. Since almost last three years, ever since transaction tax was imposed lot has happened. Two exchanges have suspended trading, third one is struggling to stay afloat. MCX and NCDEX are busy protecting their business and adjusting to new regulatory environment. Both have seen exits of their promoters or anchor investors. New opportunities that are being talked about would come with competition.

Whatever this may be for the sector and stakeholders, for Mrugank this is a challenge. He however is aware that he is from a different industry though also having experience of dealing with multi country regulators. However equally aware that so far as MCX is concerned, it has maintained market share, it has started getting a fresh talents at senior level and industry veterans like Mr Singhal and other subject experts are there in the exchange to guide him.

And he remembers he has not been able to pursue his college days' hobbies of playing bridge or acting in plays, but if he could get time he would like to do non-business travel and pursue his hobbies again. His one and half decade successful stint at Deutsche Bank was quite busy as he had to travel a lot. However he had dealt with several Foreign investors and that could help the exchange as well.