NCDEX cuts CEO’s 3-year extension to just 1 year

Mumbai: The National Commodity & Derivatives Exchange has cut short the extension in the tenure of its CEO Samir Shah to a year, barely two months after shareholders approved another three years for the CEO after he completes his term this week. NCDEX chairman Rabi Narayan Das confirmed the development.

“We have recommended a one-year extension for Shah and sent the same to Sebi for approval,” he said but did not elaborate on the cause of the decision saying it was a “board decision”. The board had passed a resolution on May 26 re-appointing Shah for three years from the day he completes his term on August 19. This was approved by shareholders at an EGM on June 20.

The exchange has now sought Sebi’s approval for Shah to serve only one year starting August 20. A Sebi official said it has received NCDEX recommendation on Shah and would take a call soon. Sebi had earlier directed the exchange to examine the senior management’s role in the suspension of castor seed futures in January, which took the markets by surprise.

The exchange suspended castor futures at Sebi’s prodding. Sebi in its investigation found alleged cartelisation by Ruchi Soya and five others in the castor counter. It barred Ruchi Soya and another entity from dealing in the securities market till further directions. Ruchi told stock exchanges it was seeking legal advice.

An interim action-taken report by a board subcommittee not found anything of “serious nature” against the exchange’s senior management, a person aware of the development said.

A Sebi official said the regulator was yet to take stock of a final report by the board subcommittee. At the helm since August 20, 2013, Shah has worked hard to improve the performance of the exchange with partial success. Since fiscal 2014 –– the year he took over as MD –– through 2016, average daily turnover rose 7 per cent.