Home / Companies / MCX initiates action against employees after PwC audit

Mumbai: Multi Commodity Exchange of India Ltd (MCX), a unit of Financial Technologies (India) Ltd (FTIL) and the country’s largest commodity exchange by market share, has initiated action against certain employees based on issues highlighted in a special audit report prepared by PricewaterhouseCoopers (PwC).

MCX said in a stock exchange announcement that it had also taken action such as filing complaints before appropriate authorities, without divulging further details.

The board of MCX, at its meeting held on 26 April, had directed the management to initiate action after obtaining the required approvals.

“Company has initiated certain actions such as filing complaints before appropriate authorities; and issued notices to certain employees," MCX said.

PwC, which carried out a forensic investigation on certain areas of MCX’s business under an order of the Forward Markets Commission (FMC), found that MCX operations remained significantly dependent on FTIL and its group companies even after the exchange’s public listing in 2012.

The report of the special audit done by PwC, the summary of which was released last week, raised questions about so-called related party transactions and asked whether dealings between the exchange and its parent FTIL had been conducted at “arm’s length".

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