MCX board to meet on April 3; consider changes in MoA, AoA

Commodity exchange MCX today said the company's board will meet on April 3, to consider changes in main object clause of memorandum of association (MoA) and articles of the association (AoA).
In a filing to the BSE, MCX said: "...A meeting of the Board of Directors of the Exchange will be held on April 3, 2014, inter alia, to consider the alteration of main objects Clause of Memorandum of Association and Articles of the Exchange."
Country's largest commodity exchange MCX is the part of Jignesh Shah led Financial Technologies India Ltd (FTIL).
In its order of December 17, 2013, the FMC had declared FTIL and its chief Jignesh Shah unfit to run any exchange following the turmoil at group firm National Spot Exchange Ltd (NSEL).

The regulator said FTIL was not 'fit and proper' to hold more than 2 per cent stake in Multi Commodity Exchange (MCX). FTIL currently owns 26 per cent in MCX.
Following this, the board of MCX also asked its promoter FTIL to divest shares in excess of 2 per cent.

The NSEL, which is promoted by FTIL, has been defaulting on payments to 13,000 investors. In July, FMC had halted trading at the exchange.
Multiple investigative agencies like Enforcement Directorate and the CBI are already probing the NSEL payment crisis, while Revenue department, Reserve Bank, Sebi, FMC and Corporate Affairs Ministry are also looking into it.

The commodity market regulator's order has been challenged by the group in Bombay High Court.