Shares of MCX, Financial Tech rally 5% on board rejig

Shares of Multi Commodity Exchange of India (MCX) and Financial Technologies rose on hopes of revival on the back of restructuring of boards. Both the stocks caught in the National Spot Exchange (NSEL) crisis gained around 5 percent in morning trade on Thursday.

Securities and Exchange Board of India (Sebi) appointed Thomas Mathew as the public interest director on the board of MCX-SX. The board of MCX-SX now has five directors including U Venkataraman, whole time director who would be assisting the Special Committee of public interest directors in running the day to day affairs of the stock exchange.

The decision came after MCX-SX shareholders met at an extraordinary general meeting (EGM) conveyed under the directions of Sebi.  After the Forward Markets Commission (FMC) issued show cause notice to Financial Technologies and directors of NSEL Jignesh Shah, Joseph Massey and Shreekant Javalgekar, Sebi had stepped in.

Sebi also asked shareholders to take appropriate action including reconstitution of the board, reappointment of key managerial personnel and report by October 16. This corporate action has led to founder and vice chairman Jignesh Shah and Joseph Massey resigning with immediate effect.

Meanwhile, according to CNBC-TV18 sources, Financial Technologies board may have to be restructured and is awaiting final probe reports. 

Currently, Ministry of Corporate Affairs (MCA) and other departments are going through the minutes of the meetings between NSEL and FT.

MCX is locked at a 5 percent circuit at Rs 425.00, up Rs 20.20 on the BSE. At 10:46 hrs Financial Technologies was quoting at Rs 170.95, up Rs 6.40, or 3.89 percent.