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Some big shareholders of the Multi Commodity Exchange (MCX) have asked it not to make haste in hiring a new managing director (MD).
MCX is undergoing a big change in its equity ownership, as part of a process of exit for its erstwhile promoter, Financial Technologies (FTIL). It was to conduct an interview among the applicants for the MD’s job last week; this was postponed after two big shareholders from the existing lot wrote to the exchange.
They noted the selection committee had no proper representation of major shareholders and that Kotak Bank had signed a deal with FTIL to buy the latter’s 15 per cent stake. Given this development, too, the MD’s appointment should be put on hold, at least till the deal was closed, said a private equity investor.
Another shareholder noted the earlier MD had been hired in a hurry and lasted only three months. “Such haste should be avoided and till the new MD is appointed, Praveen Kumar Singhal who has vast experience in different fields should continue to remain in charge,” said a person familiar with the development.
Singhal, a senior with the exchange, has been given charge till a new MD is appointed; he’d twice earlier turned down the job.
Apart from Kotak, billionaire investor Rakesh Jhunjhunwala had bought a little less than five per cent stake in the exchange in recent weeks. MCX had got 60 applications for MD, of which it shortlisted 16.
“The selection committee of the exchange at present has least representation of shareholders and it is not meeting FMC guidelines in letter and spirit,” said a shareholder.
