NCDEX board extends CEO Samir Shah’s term by six months

MUMBAI: The NCDEX board has extended the term of its MD & CEO Samir Shah by only six months against the expected one year after SEBI directed the exchange to follow the governance norms laid down by it for appointment to the top official’s post. However, Shah will be eligible to apply for the post which has been advertised in a national daily, in keeping with SEBI requirements, NCDEX chairman Rabi Narayan Das told ET, confirming the development.

“The appointment to and extension of the MD & CEO’s post has to adhere to SEBI guidelines,” said Das. “In keeping with these norms, we have issued an open advertisement for the post, for which Shah is eligible to apply. He was appointed before the merger of the erstwhile commodity market regulator Forward Markets Commission (FMC) with SEBI in September 2015. Now that SEBI regulates the market, we have to follow its norms.”

The norms stipulate that the exchange constitute a selection committee which will advertise for the top post in all editions of at least one national daily. The ad looks for a candidate with minimum 20 years experience in sales, operations or management and one with “good understanding” of commodities /commodities markets.

Shah became the MD & CEO of NCDEX on August 20, 2013. Last year, he was given a one-year extension, which would end this week. His term has been renewed for six months through February.

Asked whether he would apply for the post once his term ends, Shah declined to comment. He said, “It’s SEBI procedure to have all MDs/CEOs to be appointed as per SEBI guidelines. They don’t disturb during incumbency but since it was term renewal for me they said at the time of renewal the appointment should be done as per SEBI guidelines which include an ad and a selection committee, etc and I will be eligible to apply.”

Shah’s tenure has been marked by government imposing stock limits on essential commodities like sugar and chana, traded on the bourse through futures contracts, and temporary suspension of commodities. This, along with a fall in commodity prices, has taken a toll on exchange turnover, which Shah has been at pains to increase. He told ET that the exchange hoped to introduce options trading by Diwali this year.

In the fiscal year 2017 (Apr-Mar), NCDEX turnover fell by 41% to Rs 5.96 lakh crore. The turnover of the country’s largest exchange MCX in FY 2017 was Rs 58.66 lakh crore while that of plantations bourse NMCE was Rs 28442 crore. NCDEX ‘s market share was around 9%.

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