INDIA'S SEBI RENEWS MCX-SX RECOGNITION FOR 1 YR WITH CONDITIONS

http://www.sebi.gov.in/sebiweb/home/detail/26412/new/PR-SEBI-issues-directions-t
o-MCX-SX-Limited-and-MCX-SX-Clearing-Corporation-Limited-to-strengthen-their-gov
ernance-structure 
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 
Mumbai 
 September 11, 2013  
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Karthikeyan Sundaram
Industrial, Aerospace
Bloomberg News
Direct: +91-11-41792009
Mobile: +91-9717314445
E-mail: kmeenakshisu@Bloomberg.net
http://www.bloomberg.com
 
 
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