Commodities

FMC chief gets extension

Our Bureau Mumbai | Updated on July 09, 2014

Ramesh Abhishek





The Ministry of Finance has asked Forward Markets Commission Chairman Ramesh Abhishek to continue with his present assignment till ‘further orders’.

The three-year term of Abhishek, an IAS officer of 1982 Bihar cadre and an alumnus of the Harvard Business School, ended on Monday. The decision to continue with Abhishek as FMC Chairman comes at a time when the Commission is assigned with the task of sorting out the financial mess created by the ₹5,600-crore settlement default by the National Spot Exchange, promoted by Financial Technologies.

In an eventful stint as FMC Chairman, Abhishek has declared Multi Commodity Exchange promoter Financial Technologies as not ‘fit and proper’ to own stake in commodity exchange after the NSEL fiasco. MCX promoters were asked to bring down their stake from 26 per cent to two per cent in December last year. The Commission ordered a special audit on MCX which revealed major discrepancies in its functioning. In a bid to exert pressure, FMC refused to allow MCX launch new contracts till its promoters divest their stake to two per cent.

Interestingly, the Ministry of Finance has issued an advertisement in the last week of April inviting applications for the FMC Chairman’s post.

Published on July 09, 2014

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