Mumbai, Oct. 19: Multi Commodity Exchange of India (MCX) today said its managing director & CEO Shreekant Javalgekar has resigned from the company.
The commodity futures exchange, however, did not specify the reason behind Javalgekar’s resignation.
It is not immediately clear if the resignation was on account of any direction from the Forward Markets Commission (FMC). The resignation may have been on account of the Indian Bullion Merchants’ Association (which is a subsidiary of the crisis-ridden National Spot Exchange Ltd) and a related party trading on the MCX in violation of FMC norms. This, however, could not be confirmed.
In August, FMC, which regulates the commodity futures market, had revised the guidelines for constitution of the board of directors of commodity exchanges to bring in more corporate governance.
Under the new norms, commodity exchange boards should have independent directors not less than 50 per cent of the strength of the board. While four independent directors will be appointed by the FMC, the rest will be inducted by the bourse with prior approval from the regulator.
The chairperson of the board of directors will be an independent director appointed by the FMC and the persons to be appointed as directors should satisfy the criteria of “fit and proper person”.
After the new norms came into force, MCX had appointed R.M. Premkumar, FMC nominated independent director, as chairman of the board. It had also appointed Ravi Kamal Bhargava, also an FMC nominated independent director, as chairman of the audit committee.
This apart, Joseph Massey, a director who had earlier offered himself for re-appointment at the annual general meeting held recently, withdrew his consent and conveyed vacating his office as a director.