FMC starts taking control over MCX board

The Forward Markets Commission has initiated the process of taking control of the MCX board. CNBC-TV18 was the first to report that Financial Technologies group's group representation on MCX board is likely to fall to one from current four members.

Joseph Massey, MD and CEO of MCX-SX, has decided to withdraw his request for re-appointment as a director on MCX board. The MCX board also appointed R M Premkumar, FMC nominated director as interim chairman. This clearly means that FMC will now have a greater say in the functioning of the board. A look at new board will tell you that 4 out of 8 board members are FMC nominated. But we still expect that Financial Technologies will only be left with only one member on the board. In that we may also see either Paras Ajmera, non-Executive Director, FTIL Nominee or Mr. Jignesh P. Shah, non-Executive Vice Chairman not opting for re-appointment. But this will only be clear next week. Last month, the FMC had sent a show cause  notice to Shreekant Javalgekar, Managing Director & CEO, to which he had replied. The FMC will be responding to it next month.

So, with lot of twists and turns happening, we will get final clarity by next week. But it is certain that FMC is leaving no stone unturned to give more powers to institutions and executive directors and dilute the control of anchor investors.

Current Board of Directors

Mr. R. M. Premkumar - Independent Director, FMC Nominated
Mr. Ravi Kamal Bhargava - Independent Director, FMC Nominated
Mr. Dinesh Kumar Mehrotra - Independent Director, FMC Nominated
Mr. Santosh Kumar Mohanty - Independent Director, FMC Nominated
Mr. P. Satish - Independent Director, NABARD Nominee
Mr. Jignesh P. Shah - Non-Executive Vice Chairman
Mr. Paras Ajmera - Non-Executive Director, FTIL Nominee
Mr. Shreekant Javalgekar - Managing Director & CEO

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