Jignesh Shah’s resignation leaves MCX in the hands of all non-promoter and nominee directors
Jignesh Shah, the promoter of Multi Commodity Exchange of India Ltd (MCX), the country's largest commodity exchange, has resigned as non-executive chairman of the Exchange. Last week, the Board agreed to give Mr Shah more time (to step down) till the Forward Markets Commission (FMC) takes a decision on this matter. Mr Shah’s resignation also means that MCX would now have 10 appointed or nominated directors out of 11 members, who are non-promoters. Mr Shah has lost control over the company that he created, at least for now.
His statement shows that he thinks he has lost control over the company forever. Mr Shah is founder chairman, managing director and chief executive of Financial Technologies (India) Ltd, the main promoter of MCX. In a release, he said, "I wish the very best to the management and Board of MCX for future. I hope that they will do justice to the growth opportunities ahead of them and I will see the institution grow from a distance for the rest of my life." he added.
Mr Shah admitted that "The National Spot Exchange Ltd (NSEL) crisis has destroyed everything that I have worked hard to build over past two decades. My loss is not just financial but what has hurt me and my family most is the concerted effort to destroy my credibility and trust for which I have lived by all my life."
As reported by Moneylife, following the resignation of Mr Shah, the country's largest commodity exchange would be now run by all nominated directors. This not only raises a big question over the future of MCX but also makes foreign investors to re-consider their decision to stay invested. After all, who would be interested, if there is nobody to grow the company?
While commodities market regulator FMC has appointed six directors, the National Bank for Agriculture and Rural Development (NABARD) has nominated one director on the MCX board of 11 members. There are three representatives from banks as shareholder director on MCX board. This includes KN Raghunathan (general manager for treasury at Union Bank of India), Sanjaya Agarwal (general manager for treasury and investment at Bank of Baroda) and P Paramasivam (general manager at Corporation Bank).
Except Paras Ajmera, the nominee of Financial Technologies, all other members on the MCX board are nominee directors. This leaves complete control of MCX in the hands of people who are not promoters.
Indian markets are headed for a new high. Watch for a close below 6,230 for the uptrend to break
The stock markets remained positive throughout much of Thursday’s session before a late rally extending the markets to end positive for the third day in a row, amidst heavy volumes on the derivatives expiry day. The sentiment remains very positive as of now and the indices will take a crack at an all-time high soon.
The Sensex and the Nifty opened at 21,000 and 6,237, respectively, almost flat. And it hovered little above this level for much of the trading session. The Sensex and Nifty hit an intra-day low at 20,991 and 6,235, respectively. However, a surge towards the end of the trading session brought the market back to life. Sensex and Nifty hit their respective intra-day highs of 21,205 and 6,309 respectively, before closing at 21,164 (up 130 points or 0.62%) and 6,299 (up 47 points or 0.76%) respectively.
However, the breadth of the market was barely even, with slightly more advances than declines, signifying resistance. Out of 1,218 stocks, 636 were up, 515 were down and 67 were unchanged. The volumes on the National Stock Exchange was seen at 89.94 lakh shares among the highest on a derivative expiry day when volumes are much higher than other days .
All NSE sectoral indices were in the green except for pharmaceuticals which was down 1.44%. PSU Banks finished strongly and shot up 7.40%.
Among the Nifty stocks, 35 stocks ended in the green. The top five gainers were Bank of Baroda (up 10.98%); PNB (9.44%); SBIN (4.35%); JP Associates (4.14%) and IDFC (3.48%). The top five losers were Dr Reddy (down 3.49%); Ambuja Cement (2.80%); Sun Pharma (1.71%); Lupin (1.68%) and Ranbaxy (1.31%).
The key moment for markets, the decision of the US Federal Reserve to maintain status quo in its bond purchase program, came and went without much fanfare as the outcome was expected. But many were disappointed. A reading between-the-lines of the Federal Open Markets Committee statement indicates a vague idea of tapering some time in the future based on data.
Meanwhile, the Euro region recovery remains questionable as unemployment numbers were discouraging, at 12.2%, a record high in September, though inflation did slow down. The ECB announced that existing swap lines with central banks will be permanent, indicating that all options are on the table in case of crisis.
Most European markets were seen trending higher. Similarly, most Asian markets were down, with only New Zealand up by 0.86%. US Futures were flat.
In what appears to be the tip of an iceberg, the sting operation by IndiaNews highlights dangers of giving 'Aadhaar' to illegal immigrants that would help them to get all benefits meant for Indian citizens
IndiaNews, a Hindi TV news channel has unearthed a scam where anyone can buy Aadhaar or the unique identity number by paying just Rs500. According to a sting operation carried out by the channel in Noida, one person Samir (who is allegedly an employee of Smart Chip Ltd) used to provide Aadhaar letter without taking any proof from the applicant.
The report says Samir was issuing Aadhaar letters to even non-Indians on payment of Rs500 or more.
As per Unique Identification Authority of India (UIDAI) the person enrolling for its UID number scheme, has to either submit proof of identity (POI) or address (POA), date of birth and proof of residence (POR). This however, can be sidelined as UIDAI says "Resident who does not have POI and POA may get enrolled through an Introducer/ Head of Family".
IndiaNews is run by Kartikeya Sharma, who recently bought News X and The Sunday Guardian.