INDIA: MCX-SX sets up committee to comply with SEBI order

Monday September 23 2013

Further to the update of 13 September 2013, it has been reported that the MCX Stock Exchange (MCX-SX) has set up a high-level committee to oversee its key functions, including top-level appointments and significant financial matters. While the Securities and Exchange Board of India (SEBI) had decided to renew the Exchange’s license despite continuing troubles at NSEL, which has defaulted on at least five payments so far, the regulator asked MCX-SX to work towards strengthening its governance practices.

A similar committee has been set up by the MCX-SX Clearing Corporation as well to ensure compliance with a SEBI order issued on September 12 in the wake of a Rs. 5,600-crore payment crisis at group entity National Spot Exchange (NSEL).

The committees would advise boards of the two entities on major policy matters and ensure all regulatory compliance.

MCX-SX has also called an Extra Ordinary General Meeting (EGM) of its shareholders on October 9, wherein their approval would be sought on “the status on conflict of interest and compliance” with the relevant SEBI regulations by directors and the key management personnel including managing director, pursuant to the latest SEBI order.

This information will be updated as soon as further details become available.