MCX CEO Resigns in Ongoing Confusion at Financial Technologies

The Multi Commodity Exchange of India (MCX) has announced that CEO, Shreekant Javalgekar, is resigning from the company. The news follows the announcement earlier this month that Jignesh Shah was leaving his post as vice-chairman and shareholder director of the exchange. Shah heads Financial Technologies, an Indian financial firm that holds a 26% stake in the MCX, as well ownership positions in nine other exchanges. Financial Technologies has been the center of scandal since one of its controlled trading venues, the National Spot Exchange (NSEL), halted trading and held back payments of members. The whereabouts of customer funds are part of an ongoing police investigation into the NSEL to determine responsibility for the fraud, with board members and management blaming each other.

Due to the events at the NSEL, the Finacial Markets Commission has issued ‘show cause’ notices to Javalgekar and Shah that questioned whether they met ‘fit and proper’ statues to lead the MCX. As a former finance director at Financial Technologies, Javalgekar was singled out for his ties to the parent group and NSEL.

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Looking ahead, the MCX stated that the board would meet this week to discuss the appointment of a new CEO. In terms of Javalgekar, the MCX didn’t comment on reasons for the resignation.