MSEI appoints Udai Kumar as full-time MD and CEO
Kumar was given interim charge at the helm of affairs at MSEI after then MD and CEO Saurabh Sarkar had resigned
Mumbai: Metropolitan Stock Exchange of India Ltd, formerly known as MCX Stock Exchange (MCX-SX) of India Ltd, appointed Udai Kumar as managing director and chief executive on a permanent basis after receiving regulatory approval.
He has been in the role on an interim basis since October.
“The SEBI (Securities and Exchange Board of India) approval comes after a stringent shortlisting process and interviews by the Selection Committee,” the exchange said in a press statement on Monday.
On 12 October, Mint had reported that Kumar was given an interim charge at the helm of affairs at Metropolitan Stock Exchange after then managing director and chief executive Saurabh Sarkar resigned. Sarkar had quit at a time when the exchange has lost considerable market share in the currency derivatives segment.
The exchange, which once boasted of a significant share in the currency derivatives segment, had become a fringe player as operational and ownership concerns led to the volumes shift to other exchanges like the National Stock Exchange of India Ltd (NSE) and BSE Ltd.
MSEI’s turnover in the currency derivatives segment declined to below Rs.1,000 crore after crossing Rs.10,000 crore in October 2009. The turnover gradually declined due to competition from other exchanges as well as additional restrictions by the Securities and Exchange Board of India (Sebi) in July 2013.
The currency derivatives segments of NSE and BSE register a turnover in excess of Rs.20,000 crore and Rs.10,000 crore, respectively.
In July 2013, Sebi tightened the exposure limits for currency derivatives to check large scale speculation in the market and help the government stem a weakening of the Indian currency. The exposure to all currency contracts for a broker had been capped at 15% of their overall exposure or $50 million, whichever is lower. Sebi had also doubled the initial margins and extreme loss margins for dollar-rupee contracts.
According to a Press Trust of India report in September 2013, the turnover in the currency derivatives segment witnessed a decline after Sebi’s directive.
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