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A big race is on for the post of Managing Director (MD) and Chief Executive Officer (CEO) at MCX, the largest commodity exchange in the country. Nearly 160 applications from former and current officials at rival bourses, clearing corporations, internal candidates, and commodity market experts have been received for the top job.
Of these, only five candidates have been shortlisted by the board, and final interviews will be held early next week, sources told BusinessLine .
Some of the applicants have reached out to large shareholders of MCX to garner support.
Meetings with shortlisted candidates were held during the second week of February, and interview letters were issued on the same day, sources said.
Paranjape leads the race
Mrugank Paranjape, current MD and CEO, who is seeking re-appointment, has also been shortlisted and is leading the race, the sources said.
Under Paranjpe, the exchange continued to maintain 90 per cent market share in the last three years; however, track record on operational profits was passive, considering the fact that a large portion of the exchange’s income came from interest on cash and other income.
Also, pre-tax earnings were affected due to higher other expenses. According to a report by HDFC Securities, of the ₹108 crore profit in financial year 2018, ₹92 crore came from other income, which includes interest earned on cash and extraordinary items.
For the current financial year, profit is likely to increase to ₹126 crore, but other income may dominate at around ₹73 crore.
Cash and equivalent on MCX balance-sheet stood at ₹1,681 crore as on FY18, and is projected to grow to ₹1,700 crore for FY19.
Nearly 50 per cent of MCX’s current market capitalisation can be attributed to the cash on its books.
The next chief at MCX will have to deal with multiple issues, including growing competition. There were reports that the exchange was involved in initial talks with the National Stock Exchange Limited for a merger deal.
These talks died down pending regulatory challenges on various issues.
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