Jignesh Shah, Vice-Chairman and Shareholder Director, has resigned from the board of directors of MCX-SX, the third stock exchange in the country.

 Mr. Shah is the promoter of National Spot Exchange Ltd. (NSEL), which defaulted around Rs. 5,600 crore to investors as part of settlements of the exchange.  

 “Thomas Mathew T, former Current-in-Charge Chairman, LIC, has been nominated as public interest director of MCX-SX by SEBI in a letter dated October 8, 2013,” said MCX-SX in a release.

 Further, Joseph Massey has resigned as Managing Director and CEO of MCX-SX and as shareholder director of MCX-SX CCL with immediate effect.

 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, the release added.

 The extra-ordinary general body meeting of the stock exchange, which was held on Wednesday, ratified all the changes.

These changes have been made as SEBI had issued directions to MCX-SX Limited and MCX-SX Clearing Corporation Limited (MCX-SX CCL) to strengthen their governance structure while granting the renewal of recognition to it for a period of one year commencing from September 16, 2013.

SEBI had also asked the shareholders of MCX-SX and MCX-SX-CCL in their AGM/EGM “to examine conflict of interest and compliance with SECC Regulations 2012 by the directors and the key management personnel including managing director, and take appropriate .”