The Forward Markets Commission has given 10 days to the Multi Commodity Exchange for coming out with a time-bound programme to reduce its parent Financial Technologies’ holding in the exchange.

Last December, FMC declared Financial Technologies as not fit and proper to operate a commodity exchange, as another group company, the National Spot Exchange, had defaulted on trade settlement worth ₹5,600 crore.

The regulator also instructed MCX to ensure that the promoters reduce their equity holding to two per cent from 26 per cent.

“We are in receipt of a letter from the Forwards Markets Commission requiring us to take immediate and effective steps to implement its order dated December 17. We have been asked to submit to FMC a time-bound programme for the implementation of the order within 10 days,” said MCX in a statement to BSE on Saturday.

Non-compliance of FMC directives will entail appropriate action under FCRA, 1952, it said. Manoj Vaish has taken charge as the Managing Director and Chief Executive Officer of MCX.

His appointment has been approved by the FMC for three years. Prior to joining MCX, Vaish was the Managing Director & CEO of NSDL Database Management. He has earlier held the positions of President and CEO of Dun and Bradstreet India, Executive Director and CEO of Bombay Stock Exchange, and also held various positions in Deutsche Bank and ANZ Grindlays Bank.

Addressing MCX employees, Vaish said the exchange will focus on being a compliance-driven organisation and augment the development of the commodity ecosystem by unfolding its latent potential.

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