Former Home Secy Pillai to join MCX-SX as public interest dir

Jignesh Shah-led Financial Technologies is the promoter of National Spot Exchange (NSEL), which is grappling with Rs 5,600 crore payment crisis.

New Delhi: MCX-SX, a part of Financial Technologies group, on Monday said former Home Secretary Gopal Krishna Pillai has been nominated as public interest director on its board.

Jignesh Shah-led Financial Technologies is the promoter of National Spot Exchange (NSEL), which is grappling with Rs 5,600 crore payment crisis.

"Gopal Krishna Pillai, former Home Secretary to the Government of India, has been nominated as Public Interest Director of MCX Stock Exchange (MCX-SX) by Sebi vide their letter dated October 14, 2013," the stock exchange said in a late evening statement.

Capital market watchdog Sebi, while renewing MCX-SX licence last month, had directed the bourse to strengthen its corporate governance structure.

Pillai is the second public interest director nominated by Securities and Exchange Board of India (Sebi) at MCX-SX. after nominating former LIC chief Thomas Mathew T last week.

On October 9, MCX-SX had announced the resignations of Jignesh Shah and Joseph Massey from its board. Shah was vice-chairman and shareholder director and Massey was CEO of the company.
Massey had also quit as shareholder director from MCX-SX CCL (Clearing Corporation Ltd).

In the wake of continuing NSEL payment crisis, Financial Technologies has also come under the scanner of multiple agencies, including CBI, for alleged violations of various laws.

Ruling out government takeover of NSEL, Finance Minister P Chidambaram has said that Financial Technologies and another related entity MCX-SX are under watch.

Regarding MCX-SX, Chidambaram in a interview to a private news channel said that Sebi had forced two of its directors to resign.

The MCX-SX, Chidambaram said, "is now managed by a board which does not have suspected or tainted people."

Zee News App: Read latest news of India and world, bollywood news, business updates, cricket scores, etc. Download the Zee news app now to keep up with daily breaking news and live news event coverage.