Former Home Secretary G K Pillai to join MCX-SX as public interest director

MCX Stock Exchange (MCX-SX), a part of Jignesh Shah-led Financial Technologies Group, said on Monday that former Home Secretary Gopal Krishna Pillai has been nominated as public interest director on its board.

Financial Technologies is the promoter of National Spot Exchange Ltd (NSEL), which is grappling with a crisis involving payments worth Rs 5,600 crore.

"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 bourse said in a statement released late on Monday.

Market watchdog Securities and Exchange Board of India (Sebi), while renewing MCX-SX licence last month, had directed the bourse to strengthen its corporate governance structure.

Mr Pillai is the second public interest director nominated by Sebi at MCX-SX. The nomination comes after that of 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.

Mr 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, Mr Chidambaram in an interview to a private news channel said that Sebi had forced two of its directors to resign.

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