MCX Appoints Praveen Singhal its Interim CEO
NSEL to start payment of .` 140 crore to over 21,000 e-gold investors
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.
RELIEF FOR SMALL INVESTORS ON 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.