Metropolitan Stock Exchange’s CEO and Managing Director Saurabh Sarkar is set to quit the bourse that is battling low business volumes and inadequate reserves.
While an exchange spokesperson said that Sarkar has expressed his desire to resign, sources said he was first asked to leave by the board after which he sought some time saying he would resign on his own.
The shake-up at the top follows the exchange, formerly known as MCX Stock Exchange (MCX-SX), facing a major crisis due to declining trading volumes and only few months of cash reserves left with it, highly-placed sources said.
When contacted, an exchange spokesperson said its board would be meeting shortly to appoint the successor to Sarkar.
“Saurabh Sarkar, MD and CEO of Metropolitan Stock Exchange of India Ltd (MSEI), formerly MCX-SX, has expressed his desire to resign. The board of MSEI will be meeting shortly to appoint a new MD and CEO,” the spokesperson said.
Sources said that the board meeting could be held either this week or the next week to decide on the new CEO.
They also added that non-performance and failure to turnaround the business of the exchange were the main factors that have led to Sarkar’s exit and the exchange has only two-three months of cash reserves left with it.
The MSEI board took a strong view of the situation and therefore it asked asked Sarkar to leave.
Metropolitan Clearing Corporation’s head Udai Kumar is likely to be given the interim charge of the exchange.
MSEI rechristened itself from MCX-SX in the wake of the turmoil at its former promoter Financial Technologies that was triggered by the Rs 5,700 crore payment crisis at the National Spot Exchange Ltd (NSEL), all of which were earlier part of the same group.
Following regulatory orders, the erstwhile promoters had to leave the exchange, which had begun operations with much fanfare as the country’s newest stock exchange. While it began operations in currency derivatives segment from October 2008, it launched capital markets trading in February 2013.
Sarkar, previously MD and CEO of United Stock Exchange of India, was appointed its CEO in February last year after his predecessor Joseph Massey had to quit in the aftermath of NSEL crisis.