New Delhi: MCX Chairman Venkat Chary and five other directors on the commodity exchange board quit Friday following the implementation of new guidelines including those that bar any person over 70 years of age to hold a board position.
While Chary and C M Maniar, who was an Forward Market Commission-approved independent director on MCX, quit due to the age guideline, the exchange's former managing director Lambertus Rutten resigned citing pre-occupations.
P R Barpande too resigned due to pre-occupation, MCX said in a filing to the stock exchanges.
The development comes on the heels of NSEL defaulting on the second payout for settling Rs 5,600 crore dues after it suspended trade on July 31 following government's direction in the wake of violation of certain rules.
Both National Spot Exchange Ltd (NSEL) and MCX are promoted by the Jignesh Shah -headed Financial Technologies India Ltd (FTIL).
MCX also said: "...The exchange has earmarked Rs 232.39 crore as initial settlement guarantee fund (SGF) and that the exchange will always remain in compliance with SGF guidelines of FMC as may be prescribed from time to time."
Meanwhile, FMC nominated independent director Prakash Apte has also resigned with effect from August 31 and has been replaced by Santosh Kumar Mohanty by the regulator.
Shareholder Director Shvetal Vakil resigned from the Board due to the term criteria prescribed in the guidelines.
Whereas, the resignations of Chary, Maniar, Vakil, Apte and Rutten are effective from August 31, 2013, that of Barpande's is effective from today, the filing added.