Mumbai: Commodities market regulator, the Forward Markets Commission (FMC), has rejected a proposal from Multi Commodity Exchange of India Ltd (MCX) to appoint Balasubramaniam Venkataramani as the managing director (MD) and chief executive officer (CEO) of the commodity bourse.

“... we wish to inform that FMC has conveyed that the proposal of the company for the appointment of Balasubramaniam Venkataramani as MD and CEO cannot be agreed to," said a stock exchange filing by MCX on Friday.

Balasubramaniam is the chief business officer of BSE Ltd.

On 13 February, the board of MCX approved the appointment of Balasubramaniam as the head of the exchange, subject to FMC’s approval.

MCX, which is the country’s largest commodity exchange in terms of market share, has remained without a full-time MD & CEO since May last year when Manoj Vaish resigned after just three months on the job.

Thereafter, on 23 May, the exchange appointed the then executive vice-president Parveen Kumar Singhal, as interim CEO until a replacement was found.

In September, the shareholders of MCX approved the appointment of Singhal as joint managing director for a period of three years.

While in February, the board of the exchange approved the appointment of Balasubramaniam as the head of the exchange, reports have suggested that FMC questioned the exchange on the appointment of Balasubramaniam.

On 16 March, Business Standard reported FMC has asked MCX if the proposed appointment complies fully with the procedures that need to be followed while appointing the managing director of exchanges, such as issuing advertisements and inviting applications.

The report further said that since Balasubramaniam’s appointment was made by a headhunting agency appointed by MCX, the FMC wanted to know if the headhunting agency’s processes were in line with the norms.

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