Mumbai, Aug. 20: Crisis-ridden National Spot Exchange Ltd (NSEL) has sacked its managing director and CEO Anjani Sinha and six other top executives as it failed to entirely meet its first scheduled repayment to investors today.
Matters became worse with sector regulator Forward Markets Commission (FMC) warning the board of directors in a stern note that their status as a “fit and proper” person to manage a bourse was at serious risk.
“You are advised to take a serious note of the facts brought to your notice and take all necessary steps to comply with the directions of the commission. The board should take complete responsibility for the completion of settlement of all outstanding trade at NSEL,” the FMC said.
The beleaguered bourse had committed to pay Rs 5,600 crore in 30 weeks, and the first disbursement of Rs 174.72 crore was due today. However, NSEL could manage to pay only Rs 92.12 crore as nine members defaulted and failed to pay their dues.
Some of the members who did not make their payin included ARK Imports, LOIL Overseas Foods, Lotus Refineries Pvt Ltd, NK Proteins Ltd, NCS Sugars Ltd and Spin Cot Textiles, the exchange said in a statement today.
Meanwhile, in a surprise move, the exchange sacked Sinha and six senior management executives.
“The board has decided that the current key management team headed by Anjani Sinha, managing director and CEO, and other relevant heads of departments be removed from their current assignments, pending an inquiry,” NSEL said in a statement.
Chief financial officer Shashidhar Kotian was also asked to go. Five others who were sacked today are Amit Mukherjee (assistant VP —business development), Jai Bhaukhundi (assistant VP — market operations), Maneesh Chandra Pandey (manager — business development), Santosh Mansingh (assistant VP — market operations) and H.B. Mohanty (assistant VP - market operations).
The decision was taken at a board meeting held on Monday to identify measures to resolve the problems at NSEL, the bourse said, without elaborating on the reasons behind the sacking.
Though Sinha will cease to be the managing director and CEO of NSEL with immediate effect, he will be a special officer assisting in recovery process.
The board appointed P.R. Ramesh as the officer on special duty to exercise all powers of a CEO. He will report to the board directly.