PR No. 84/2013
SEBI issues directions to MCX-SX Limited and MCX-SX Clearing Corporation
Limited to strengthen their governance structure
SEBI has issued directions to MCX-SX Limited and MCX-SX Clearing Corporation
Limited (MCX-SXCCL) to strengthen their governance structure while granting
the renewal of recognition to MCX-SX Limited for a period of one year
commencing from September 16, 2013. The conditions imposed by SEBI are :
1. A committee comprising of two Public Interest Directors and three nominees
from institutional investors in MCX-SX shall be constituted within two days of
renewal of recognition to oversee the following functions of the exchange :-
a. All financial transactions related to investment, lending, and
borrowing of funds and related party transactions as defined in AS 18.
b. Appointment of Key management personnel.
c. All facility / infrastructure sharing arrangements
d. All major capital expenditures
and advise the board on all the major policy matters. The board will
consider the advice and maintain a record of the proceedings.
A committee on the same lines may also be constituted by MCX-SXCCL which
is a subsidiary of MCX-SX. The said committee shall oversee the clearing and
settlement functions in addition to the functions listed above.
2. In-order to further secure the management of the exchange and clearing
corporation, shareholders of MCX-SX and MCX-SX-CCL in AGM/EGM would examine
conflict of interest and compliance with SECC Regulations 2012 by the directors
and the key management personnel including managing director, and take
appropriate action including reconstitution of board, reappointment of any key
management personnel and will report to SEBI within 30 days from the date of
renewal of recognition.
3. Any non-compliance with the directions of SEBI as given above or which may
be given from time to time or any adverse findings by any other regulator may
result in withdrawal of recognition of the exchange.
Necessary steps have been taken to notify the renewal of recognition of MCX-SX
Limited in the Gazette of India
September 11, 2013
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