Securities and Exchange Board of India (Sebi) Chairman UK Sinha while asserting that "timely action" would be taken against companies violating rules, said the regulator is very alert to ensure protection of investors' interests.
His comments came in response to a query on whether Sebi would be initiating action against MCX-SX which rejigged its board on Wednesday amid
continuing payment crisis at its group firm National Spot Exchange Ltd (NSEL).
Without taking names, Sinha said the
regulator would act to protect the interest of investors.
"I would like to assure all of you that Sebi is very alert that interests of investors, who are working on the platform of Sebi regulations, is not compromised and is protected. Whatever is required for that purpose, Sebi is alert and we are going to act," he said.
MCX-SX, promoted by Jignesh Shah-led Financial Technologies (FTIL), saw the
resignations of its two top executives - Shah himself and the bourse's Managing Director and CEO Joseph Massey.
MCX-SX also announced on Wednesday that Sebi has nominated former LIC chief Thomas Mathew T as the bourse's Public Interest Director.
"As an interim arrangement, U Venkataraman, whole-time Director, will assist a Special Committee of Public Interest Directors in carrying out the functions of the exchange," it had said.
Massey also
resigned as shareholder director from MCX-SX CCL (Clearing Corporation Ltd).
The high-profile exits come at a time when FTIL-promoted NSEL is grappling with nearly Rs 5,600 crore payment crisis due to non-payment of dues to 13,000 investors.
Following the crisis, FTIL and some of its group entities are under the scanner of various authorities, including the CBI and the Ministry of Corporate Affairs.
When asked about developments at MCX-SX, Sinha - speaking on the sidelines of an event organised by industry body PHD Chamber - said a certain plan of action had been suggested to the exchange when its license was renewed last month.
However, he did not disclose specific details.
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