While renewing MCX-SX recognition for a period of one year, commencing from September 16, Sebi also asked MCX-SX Ltd to constitute a committee of two independent directors and 3 institutional investor nominees to oversee key business decisions, policy matters and appointments of top management.
    
Similar directions were also issued to MCX-SX Clearing Corporation Limited (MCX-SXCCL), a subsidiary of MCX-SX.     

The committee needs to be constituted within two days of the renewal of licence.
    
MCX-SX Ltd is promoted by Financial Technologies Group which also runs spot commodity exchange National Spot Exchange Limited (NSEL), which has been engulfed in a crisis when it stopped trading on all contracts on July 31 following government directives. It raised concerns about the possible default of Rs 5,500 crore to investors.
    
NSEL defaulted for the fourth consecutive week as it could pay only Rs 7.77 crore to investors out of scheduled Rs 174.72 crore. The crisis-ridden bourse had defaulted in payments on three previous occasions as well.

(Agencies)

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