Jignesh Shah retains position on MCX Board for now

Jignesh Shah has managed to convince the MCX board and will continue to stay on board for now. He has sought more time to step down, reports CNBC-TV18's Aastha Maheswari.

Also Read: NSEL fiasco: Mumbai EOW arrests NK Proteins MD Nilesh Patel
When Shreekant Javalgekar had resigned last week there was pressure on Jignesh Shah to step down as well. However, sources say he was quite resistive and has managed to convince the board by taking advantage of the fit and proper show cause notice of the FMC.
FMC had sent them a notice seeking a reply and they had extended the time to two more weeks. So, he has taken advantage of FMC's Fit and Proper notice saying that only once FMC comes out with that final verdict only then probably – there will be a stronger case for him to step down from the board.
Another thing that has emerged is that three more FMC nominations who will be a part of the board as independent shareholders has been cleared. Apart from that more or less the MCX board reconstitution has been cleared and completed.
Meanwhile, CNBC-TV18's Sajeet Manghat adds that before the entire NSEL fiasco began MCX had nearly 14 members on its board. After the NSEL fiasco FMC has come down heavily on the board composition of MCX and as per the new composition, going by the current arithmetic only one person from the FTIL Group can be on the MCX board.
As of now there are two people - Jignesh Shah, who is also the permanent director on the board of MCX, and FTIL nominee Paras Ajmera. Incidentally Ajmera did not attend today’s board meeting though Jignesh Shah was present at the board meeting today.
Aside of the four permanent FMC nominees there were other nominees who were elected to the board, they are P Paramasivam who is the corporate bank nominee, Mr Satish is there who is a Nabard nominee and the board is currently headed by RM Premkumar, who is the independent director and also an FMC nominee. The audit committee is also headed by an FMC nominee, his name is Ravi Kamal Bhargava.
Currently there are certain decisions which have been taken in the board meeting which include possible removal of that clause from the article of association which provides for permanent directorship for Jignesh Shah or his nominee, that would be removed in the board meeting. There will be a constitution of a committee which will oversee the functioning of MCX. This would be similar to a committee which has been constituted for MCX-SX and this committee would be taking the decision as far as financial, structural and policy decision is concerned till a new CEO is appointed for MCX.
Aside of that there will be introductions of new board members. There will be a detailed press release which will be provided to the stock exchanges and as and when that happens more details will emerge on what transpired in today’s board meeting.