MCX proposes to elevate Praveen Singhal as Joint MD

Multi Commodity Exchange is considering elevating the interim Chief Executive Officer Praveen Kumar Singhal as Joint Managing Director for a period of three years.

The proposal was discussed at the recent board meeting, where it was decided that the shareholders’ approval will be sought in the annual general meeting next month, said a source.

The market regulator Forward Markets Commission assigned the task of interim CEO to Singhal, the senior-most member and key official of MCX, after incumbent MD and CEO Manoj Vaish quit in May ostensibly on health grounds. The country’s largest commodity exchange is in trouble ever since its promoters, Financial Technologies and Jignesh Shah, were declared not ‘fit and proper’ to own stake in commodity exchange after their group company National Spot Exchange (NSEL) defaulted on a ₹5,600-crore trade settlement.

A spate of regulatory measures ensured that MCX is ring fenced from the impact of NSEL default even as trading volume in Exchange more than halved compared to last year.

In July, the Exchange deferred the interview of 15 shortlisted candidates for the post of Managing Director & CEO after Kotak Mahindra Bank signed a deal with FTIL to acquire 15 per cent stake in MCX for ₹459 crore.

The stake sale pact now needs to be ratified by various Government agencies including Competition Commission of India and Forward Market Commission besides MCX shareholders.

Given the lengthy process of approval for Kotak deal, MCX feels it would be appropriate to elevate 60-year-old Singhal as Joint Managing Director. He had worked in FMC during the chairmanship of BC Khatua and S Sundareshan.

In 1992, he had a stint in SEBI and also at Delhi Stock Exchange. Singhal worked for the Haryana government for a decade.

COMMENT NOW