MCX board okays Manoj Vaish resignation; to look for new chief

The MCX's board today accepted the resignation of its Managing Director and CEO Manoj Vaish and decided to set up a search committee to look for new chief.
It also approved amendment to the company's 'Article of Association' to include the revised norms on shareholding structure and the fit and proper criteria issued recently by the regulator Forward Markets Commission (FMC) for the national commodity bourses.
In a statement, MCX said that the board had "accepted the resignation of Manoj Vaish -- MD and CEO, who will be relieved with affect from May 10, 2014."
A committee of senior executive has been constituted to manage the day to day affairs till the new MD & CEO is appointed, it said.

Sources said that a search panel will be constituted to look for a new MCX chief.
MCX said that the board also approved amendment to the main object clause of the 'Memorandum of Association' by deleting the words 'securities' and 'ready' and incorporating the words 'including related eco-systems' pursuant to the FMC order.

On May 6, FMC had issued the revised shareholding norms for commodity exchanges under which no individual promoter can hold more than 5 per cent in any commodity exchange and at least 51 per cent of paid-up equity share capital will have to be held by the public.

As per the new norms, a person or entity which has been declared as unfit by the regulator should immediately divest his stake in the commodity bourse.
Vaish resigned within three months of taking over reigns of MCX citing health reasons. His exit follows a string of resignations by senior executives since the beginning of this year, after the regulator FMC declared FTIL as unfit to run any exchange and ordered it to reduce its stake in MCX.
FTIL has into problems following the Rs 5,600 crore payment default at its subsidiary National Spot Exchange Ltd (NSEL). FTIL owns 99.9 per cent stake in NSEL, which has suspended all trading operations since the payment shortages.