Existing CEO Saurabh Sarkar puts in his papers as the exchange goes through tough times with only two to three months of cash reserves left with it
Non-performance, tough business conditions and low cash reserves have led to the exit of Metropolitan Stock Exchange's (MSE) managing director and CEO Saurabh Sarkar.
The board of MSE, formerly MCX-SX, is expected to meet next week to decide on new appointment for the top post.
According to a PTI report, Metropolitan Clearing Corporation's head Udai Kumar is likely to be given the interim charge of the exchange.
The exchange is undergoing through a tough time as it has only two to three months of cash reserves left with it, as per the PTI report.
MSE's Board took a strong view of the situation and is believed to have asked Sarkar to leave.
The high remuneration could also be one of the reasons for his surprise exit, which was recently noticed by auditors of the bourse. The auditors had pointed out the Sarkar's annual remuneration of Rs 1.81 crore per annum was Rs 6 lakh in excess of the Rs 1.75 crore package approved by directors, the stock market regulator, Sebi and shareholders.
However, the exchange in its clarification had then said that the remuneration of Rs 1.81 crore paid to Sarkar includes Rs 19.16 lakh paid to buy out the notice period of his previous employer (United Stock Exchange) to relieve him early and join the exchange. This payment was erroneously shown as remuneration instead of recruitment cost, the exchange clarified.
Another reason could be that the several changes brought in for technology contracts, brand, management and shareholders to attract liquidity in its derivatives space, have cost huge to the exchange.
All this has happened in a year's time. Formerly known as MCX Stock Exchange Ltd, the country's youngest bourse, the exchange went in for a name change in September 2014 in the wake of the Rs 5,700-crore payment crisis at the National Spot Exchange Ltd (NSEL), a group company then. The exchange wanted to distance itself from the MCX brand, which was closely linked to Financial Technology India Ltd (FTIL) and its promoter Jignesh Shah.
The bourse also shifted its head office and server from Chakala in Andheri to Bandra-Kurla Complex in Mumbai.
According to sources, major shuffles in key management since early 2014 changed the entire set-up of the exchange. The current average daily turnover in currency derivative segment ranges between Rs 1,000 crore and Rs 1,500 crore per day, as per the official data available, down from the peak turnover of Rs 55,000 crore and average daily turnover that ranged between Rs 35,000 crore and Rs 40,000 crore per day between 2012 and 2013.
Saurabh Sarkar had joined the bourse in February 2014.
In July, the exchange raised Rs 75 crore through a rights issue. The bourse stated that the amount raised through the rights issue has increased its net worth to more than Rs 225 crore. According to Sebi norms, every exchange is required to maintain a net worth of Rs 100 crore.
For the year ended March 31, 2015, the exchange registered a loss of Rs 60.12 crore against a loss of Rs 154.53 crore in the previous fiscal.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Representational image")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}