With the National Spot Exchange Limited payment crisis yet to be resolved, the Securities and Exchange Board of India said trading activities on the MCX-SX would be protected.
MCX-SX and NSEL are promoted by Financial Technologies and is regulated by SEBI.
“I would like to assure you that interests of all the people who are trading on the exchange on the currency side or the other side, that we are protecting. But, what happens to the shareholding of that particular company, on that some other regulator has to take a call,” SEBI Chairman, U.K. Sinha, told reporters on the sidelines of the Skoch summit here.
Measures taken
He said as far as the management of MCX SX was concerned, the regulator had taken certain measures. In September, it had asked the MCX-SX to constitute a committee of two independent directors and three institutional investor nominees to oversee key business decisions, policy matters and top management appointments. Similar directions were also issued to the MCX-SX Clearing Corporation Ltd (MCX-SXCCL), a subsidiary of MCX-SX.
Meanwhile, without taking names, Sinha said, “(The) concerned regulator is looking into the aspect of fit and proper part of that particular company.” The Corporate Affairs Ministry, which ensures compliance of entities with the Companies Act, is looking into the records of NSEL, Financial Technologies (India) Ltd and another group firm MCX.
“I am not aware whether they have taken a final decision so far. Once they take a final decision, the occasion will come for SEBI to take a final call. In our own order passed in mid-September, we have made it very clear that any decision or finding by any other regulator will have a bearing on our understanding and dealing with that particular company,” Sinha said.
Following the Rs 5,600-crore payments crisis at NSEL, the bourse as well as some group entities, have come under the scanner of multiple agencies. NSEL stopped trading on July 31 following a directive by the Government.
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