MCX's board to meet, consider changes in memorandum of association on April 3

Multi Commodity Exchange (MCX) on Thursday said its board will meet on April 3 to consider changes in main object clause of memorandum of association (MoA) and articles of the association (AoA).

"...a meeting of the Board of Directors of the Exchange will be held on April 3, 2014, inter alia, to consider the alteration of main objects Clause of Memorandum of Association and Articles of the Exchange," MCX said in a filing to the BSE.

MCX, India's largest commodity bourse, is part of Jignesh Shah-led Financial Technologies India Ltd (FTIL).

In its order dated December 17, 2013, the Forward Markets Commission (FMC) had declared FTIL and its chief Jignesh Shah unfit to run any exchange following a turmoil at group firm National Spot Exchange Ltd (NSEL).

Commodity market regulator FMC said FTIL was not 'fit and proper' to hold an over 2 per cent stake in MCX. Following this, MCX's board also asked its promoter FTIL to divest shares in excess of 2 per cent.

FTIL currently owns a 26 per cent stake in MCX.

NSEL has been defaulting on payments to 13,000 investors. In July, FMC had halted trading at the exchange.

Multiple investigative agencies like Enforcement Directorate and CBI are already probing the NSEL payment crisis, while the Revenue Department, the Reserve Bank of India (RBI), the Corporate Affairs Ministry, Sebi and FMC are also looking into it.

The commodity market regulator's order has been challenged by the group in Bombay High Court.