MCX Ap­points Praveen Sing­hal its In­terim CEO

NSEL to start pay­ment of .` 140 crore to over 21,000 e-gold in­vestors

The Economic Times - - Markets + Finance - OUR BUREAU

Praveen Ku­mar Sing­hal, deputy MD at Multi Com­mod­ity Ex­change (MCX), has been ap­pointed in­terim CEO of the coun­try’s largest com- mod­ity bourse, fol­low­ing the res­ig­na­tion of its MD & CEO, Manoj Vaish, ear­lier this month. Sing­hal, who will hold charge till a new MD and CEO is ap­pointed, was called back from the US where he was on leave af­ter Vaish, just three months into the job, re­signed on May 1 for health rea­sons. Com­mod­ity mar­ket reg­u­la­tor FMC man­dates that the se­nior-most per­son must as­sume charge of an ex­change if an MD & CEO’s po­si­tion falls va­cant. Sing­hal takes over at a time when the ex­change is fac­ing its worst-ever cri­sis – not be­ing al­lowed to roll over con­tracts to 2015 if it fails to com­ply with an FMC or­der that de­clares its pro­moter FT un­fit to hold stake in MCX. While FT has put 24% of its stake in MCX on the block, bid­ders, in­clud­ing Kotak Group, BSE and Re­liance Cap­i­tal, de­sisted from plac­ing a fi­nal of­fer un­til af­ter they got a full copy of a foren­sic au­dit of MCX by PwC. The au­dit was or­dered at the in­stance of For­ward Mar­kets Com­mis­sion af­ter a .` 5,600 crore scam hit

FT’s sub­sidiary NSEL.


In a ma­jor re­lief to small in­vestors on scam-hit NSEL, the bourse will com­mence pay­ment of .` 140 crore to over 21,000 such per­sons who in­vested in units backed by gold, called e-gold, traded on the bourse. Their pay­ment was stuck af­ter a few in­vestors on NSEL chal­lenged the bourse’s de­ci­sion to re­ma­te­ri­alise and fi­nan­cially set­tle the con­tracts. How­ever, hav­ing re­ceived reg­u­lato- ry ap­proval to set­tle the con­tracts, NSEL has de­cided to pay in­vestors an aver­age sum of .` 2,935.99 per unit (gram) af­ter hav­ing sold 477 kg, or 89.70% of the 532 kg avail­able for fi­nan­cial clo­sure. The re­main­ing 10.3% or 62 kg is in the process of be­ing sold. So, each in­vestor will cur­rently get an aver­age of around .` 2,633.6 per unit and the rest later.

A to­tal of 85.5 kg of gold has been re­ma­te­ri­alsed by unit hold­ers. More than 33,000 in­vestors had pur­chased egold on NSEL.

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