Multi Commodity Exchange, country’s leading exchange has proposed to appoint Parveen Kumar Singhal as a joint managing director of the exchange for 3 years. His appointment will be effective from the date shareholders approve it or with approval of Forward Markets Commission whichever is later, the exchange said in a notice for its Annual General Meeting that is being held on 23 September.
As per regulatory requirements exchange has to appoint a new MD within 60 days of earlier MD’s exit.
Singhal is at present executive vice president of the exchange and he has been given charge as Managing Director since last four months. Previous MD, Manoj Vaisj resigned in three months of his appointment and was relieved from 10 May 2014.
The exchange’s board in past had offered the post of managing director to Singhal twice but he had refused to accept it as he was attaining 60 years which was maximum permissible age as per guidelines of regulator in those days. Now new norms allows even MD to continue till he completes 62 years.
The exchange said in AGM notice that, “Given the crisis faced by the Company and in the absence of Managing Director and CEO, Singhal took the onerous responsibility to oversee the affairs of the Company and has successfully handled the day-to-day operations and guided the affairs of the Company.” The exchange also noted rich experience and special knowledge of the working of commodity exchanges of Singhal and hence also proposed to appoint him of the board as a whole time director.
Once shareholders approve his name exchange days of remaining headless will end.
Earlier exchange had invited applications for the post of MD but later Financial Technologies sold 15% stake to Kotak bank and some of the shareholders wrote to the board not to proceed with the appointment as the appointment committee doesn’t have shareholders representation.
Now with the exchange taking a decision to give responsibilities of MD to Singhal, observers say it seems entry of Kotak on the board of the exchange may take some time. The exchange, which has complied most of the directives of the regulator, is expecting approvals of its plans and hence Singhal’s appointment will ensure market players about continuity of the business and operations.