MCX to snip salaries, director fees to battle Covid -induced slowdown

Commodity exchange MCX will cut sitting fees of directors and gross salaries for ranks of assistant Vice President and above to control costs amid the COVID-19 pandemic, which has led to demand destruction for commodities.

For one, increments to all employees in Sr. Manager & above Category will be put on hold. Those of assistant VP and above grade will see a cut in gross salary. The exchange will also renegotiate with consultant /advisors for a downward revision besides reducing the sitting fees payable to directors for attending the board/committee meeting.

There will also be a cut in Board related expenses i.e. travelling/boarding and lodging, etc, reduction in marketing, business promotion and advertisement expenses. All these cost control measures would be reviewed by the Board on a periodic basis, the exchange said in a presentation to investors while declaring its Q4 numbers.


The exchange reported a 7% year on year rise in PAT at Rs 65.5 crore in Q4 while revenue jumped 22% to Rs 135 crore. Crude oil accounted for 40% of turnover in FY20, followed by gold at 21% and silver at 14%.

Crude oil futures witnessed a 20% drop in average daily turnover at Rs 2844 crore during April 21 -May 29 from ADT of Rs 3571 crore during April 1-20 preceding the negative settlement of crude On April 21 which has seen a reduction in participation.