NSEL crisis fallout: After Jignesh Shah, Multi Commodity Exchange's Shreekant Javalgekar quits

Press Trust of India, Reuters Posted online: Saturday, Oct 19, 2013 at 0000 hrs
Mumbai : Yet another top honcho in NSEL crisis has quit his post. The Multi Commodity Exchange of India Ltd (MCX) said on Saturday its managing director and chief executive officer, Shreekant Javalgekar, had submitted his resignation from the company, in which Jignesh Shah-promoted Financial Technologies (India)(FTIL) holds a 26 per cent stake.

Multi Commodity Exchange did not specify a reason for the resignation in a statement.

Financial Technologies also owns National Spot Exchange Ltd (NSEL). The NSEL has been under investigation by police since last month after India's commodities regulator ordered it to suspend trading over suspected violations of rules on contract duration.

The MCX board will meet on Tuesday to discuss the appointment of a new CEO, its spokesman said.

Earlier, Jignesh Shah and Joseph Massey had also resigned from the board of MCX Stock Exchange. Shah was the vice chairman & shareholder director of MCX-SX, Massey was the MD & CEO of MCX-SX and also the shareholder director of MCX-SX Clearing Corporation.

In a fallout of the Rs 5,600-crore settlement crisis at the National Spot Exchange, the Economic Offences Wing of Mumbai Police on Thursday had arrested former managing director and chief executive Anjani Sinha.

MCX head Shreekant Javalgekar quits

(PTI) Crisis-hit Financial Technologies Group has had another top-level exit, with the flagship Multi Commodity Exchange of India (MCX) today saying Managing Director and Chief Executive Officer Shreekant Javalgekar has resigned.

"Javalgekar has submitted his resignation as Managing Director and CEO of the company, subject to the approval of the board," MCX said in a filing to the BSE.

Jignesh Shah-led Financial Technologies Group, which runs the MCX, the MCX Stock Exchange and the National Spot Exchange Ltd (NSEL), has seen a churn at the top level since the NSEL was plunged into a payment crisis in August.

Shah and MCX Stock Exchange MD and CEO Joseph Massey resigned from the board on October 9, just before a Sebi-ordered extra-ordinary general body meeting.

The Forward Markets Commission had issued show cause notices to Shah, Javalgekar and Massey on October 4, questioning their 'fit and proper' status to operate MCX and had asked for responses by October 18. The officials had sought a one-month extension to reply to the notices, sources said on October 16.

An MCX spokesperson said Javalgekar resigned due to personal reasons.

Javalgekar has headed the country's largest commodity bourse since July 1, 2012, and was responsible for all aspects, including financial management, investor relations, corporate governance and strategies.

Prior to this, Javalgekar was finance and communications director at parent firm Financial Technologies.

The MCX board will meet next Tuesday to discuss the appointment of independent and institutional shareholder directors and a new managing director, the spokesman said.

Financial Technologies holds a 26 per cent stake in the commodity exchange.

FTIL also owns the NSEL, which is facing a Rs 5,600 crore payment crisis after the exchange said on July 31 it had halted trading.