Sebi bars former MSEI MD&CEO for six months over multiple violations

Detects breach of clearing fee rules, issue of contracts without bidding process and vendor payments without supporting bills

The Securities and Exchange Board of India (Sebi) has barred Udai Kumar, former MD & CEO of Metropolitan Stock Exchange of India (MSEI), for six months from being associated with any market infrastructure institution or associated entities.

The capital markets regulator had conducted a special purpose inspection of MSEI in February 2018. Sebi found that the policy for reimbursement of clearing fees in the currency derivative segment and technology scheme of the exchange were in violation of different regulations set by the regulator.

Moreover, under Kumar’s tenure, several contracts were alleged to have been issued without seeking competitive bidding, payments