BackKotak Mahindra Bank withdraws Paul Parambi’s nomination from MCX board
Nomination withdrawn as Kotak Commodity Services is listed as related party in latest annual report of Kotak Mahindra Bank
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Mumbai: Kotak Mahindra Bank Ltd has withdrawn the nomination of Paul Parambi from the board of Multi Commodity Exchange of India Ltd. (MCX) in which the bank owns 15% stake. Parambi is the head of strategy at the bank.
“Kotak Mahindra Bank today announced withdrawal, for the time being, of the nomination of Mr. Paul Parambi to the Board of MCX," said a statement issued by the bank.
On 2 January, the Economic Times reported that FMC has written to the board of MCX saying that Kotak Commodity Servcies Ltd can be considered as a related party and so it would be difficult for Kotak group to nominate directors on the board of MCX.
The new shareholding and ownership norms for commodity exchanges state that there should be no relation between a board member and a trading member. Kotak Commodity Services Ltd is listed as a related party in the latest annual report of Kotak Mahindra Bank.
In July, Kotak Mahindra Bank had bought 15% stake in MCX for Rs459 crore from Jignesh Shah-led Financial Technologies (India) Ltd.
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