Stocks

About two dozen candidates apply for post of MD & CEO of MCXCC

PALAK SHAH Mumbai | Updated on November 18, 2020 Published on November 18, 2020

Nearly two dozen candidates have applied for the post of MD and CEO of the clearing arm of Multi Commodity Exchange (MCX). The exchange is in the process of reappointing MD and CEO of its clearing corporation (CC) after an inspection report by SEBI had flagged violations of the Companies Act in the earlier appointment process.

MCX group insiders who are in the race include two vice-president level executives-- C N Upadhyay and Nitu Juneja-- and Soundararajan Venkatadas, head operations at MCX CC. Balu Nair, currently the Managind Director (MD) of Metropolitan Clearing Corporation, the arm of Metropolitan Stock Exchange, and Narendra Ahlawat, the present MD and CEO of MCX CC, too are likely to be considered for the interview, sources said.

MCX CC is likely to offer an annual pay package of₹1.5-₹2 crore to the MD and CEO, sources said.

Violation of Companies Act

Ahlawat has been the MD and CEO of MCX CC, the wholly-owned clearing arm of MCX, since April 2018 and his three-year term was to end in 2021. The Companies Act requires that such appointments be ratified in the immediate next EGM or AGM scheduled in the line.

The Extra Ordinary General meeting on May 9, 2018 was held at a ‘shorter notice’ and was for a specific purpose due to exigency of matter and hence the approval of shareholders for appointment as a Managing Director of the Company (of Ahlawat) could not be taken up in the Extra Ordinary general meeting held on May 09, 2018 and was taken up at the AGM held on August 16, 2018, MCXCC had told SEBI. The regulator asked the exchange to ratify the appointment again. This lead to calling for interviews even of new candidates.

An email query sent to MCX spokesperson remained unanswered.

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Published on November 18, 2020
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