MCX, Financial Tech rally after Jignesh Shah, Massey quit board

Multi Commodity Exchange of India Ltd shares gain 5 percent after a stock and currency exchange partly owned by the company announced changes to its management and board.

MCX-SX, in which MCX owns a 4.99 percent stake, said late on Wednesday that Chief Executive Joseph Massey and key director Jignesh Shah had resigned, adding that India’s market regulator had appointed a director on its board.

MCX has been under investors’ watch after a payment crisis involving commodities exchange National Spot Exchange Ltd (NSEL). Both share the same parent, Financial Technologies (India) Ltd.

NSEL abruptly suspended trading in August and has since been the subject of investigation by the local authorities.

Both Shah and Massey hold various roles across these companies.

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Shah sits on NSEL’s board and is the chairman and Group CEO of Financial Technologies, while Massey held a board seat at MCX until last month.

[caption id=“attachment_604764” align=“alignleft” width=“380”]  Jignesh Shah. Reuters[/caption]

The decision came after MCX-SX shareholders met at an extraordinary general meeting (EGM) conveyed under the directions of Sebi. After the Forward Markets Commission (FMC) issued show cause notice to Financial Technologies and directors of NSEL Jignesh Shah, Joseph Massey and Shreekant Javalgekar, Sebi had stepped in.

Meanwhile, according to CNBC-TV18 sources, Financial Technologies board will have to be restructured and is awaiting final probe reports. Currently, Ministry of Corporate Affairs (MCA) and other departments are going through the minutes of the meetings between NSEL and FT.

With inputs from Reuters