Business standard and Business line news updates 15-3-2014 *source Business standard* *G K Pillai resigns as MCX- SX chairman* BS REPORTERS Mumbai, 14 March Former home secretary Gopal Krishna Pillai has resigned as chairman of MCX Stock Exchange ( MCX- SX), less than five months after being appointed to the post, handing over the baton to Thomas Mathew, the vice- chairman. While MCX- SX, in a release, said Pillai had stepped down due to personal reasons, sources close to the ex- bureaucrat said he was “ disturbed” by the announcement of a probe by the Central Bureau of Investigation ( CBI) into alleged irregularities in the grant of sanction to MCX- SX in 2008 and its recognition being renewed in 2009 and 2010. Pillai resigned from MCX- SX after a board meeting on Friday. On Thursday, reports had indicated that the entire board of the exchange might look to step down after news about the CBI investigation broke out. However, the exchange issued an early morning press release refuting it. In a separate press statement released at noon, MCXSX said Mathew, who previously headed Life Insurance Corporation, had now been appointed chairman. The board also appointed Ashima Goyal, professor at Indira Gandhi Institute of Development Research ( IGIDR), as the exchange’s vice- chairperson. “It was a wonderful experience to work with the team and I am stepping down due to personal reasons,” said an exchange press release, quoting Pillai. The resignation did not send a positive signal, even if such a move might only have limited impact on the exchange’s day- to- day functioning, said Shriram Subramanian, founder & managing director of corporate governance research firm InGovern Research Services. “ A chairman resigning shortly after joining won’t have an operational perspective. However, it is not a good sign both for the company and the individual. Anybody joining a company as director should do thorough due diligence. Internationally, directors even hire consultants for this work before joining as there are a lot of liabilities. MCX- SX had a baggage. The chairman, when he took over, was well aware of it.” Turn to Page 7 > MARKETS, P6 FTIL sells warehousing arm; CBI grills Shah for 2nd day Financial Technologies, the promoter of crisis- ridden NSEL, on Friday announced the sale of National Bulk Handling MCX- SX: UPS & DOWNS |2008Oct: MCX- SX starts operations in the currency derivatives segment |Between 2009 and 2012: Legal battle between MCXSX and Sebi due to the latter’s refusal to grant approval for trading in equities |2012 Jul: Sebi allows MCXSX to start equity operations, asks promoters to cut stake in 18 months |2013Feb: MCX- SX starts trading in equities, including cash and F& O Sep: Sebi renews MCX SX recognition; asks it to set up oversight committee Oct: Vice- Chairman Jignesh Shah and MD & CEO Joseph Massey resign Nov: G K Pillai made chairman & Thomas Mathew vice- chairman Dec: Sebi issues fit-&- proper showcause notice to FTIL |2014Jan: MCX- SX board announces rights issue &audit of exchange from inception Feb: Appoints Saurabh Sarkar as CEO and MD Mar: Pillai resigns; Mathew appointed chairman Ex- home secy cites personal reasons for quitting in 5 months MARKETS 6 > >The birth pangs of MCX- SX >MCX- SX looks to bring in new investors Source Business line *Supreme Court rejects Nokia plea to transfer Chennai plant to Microsoft* OUR BUREAU Upholds Delhi High Court order; wants Finnish firm to settle tax dispute first *NEW DELHI, MARCH 14: * In a setback to Nokia’s plans, the Supreme Court on Friday dismissed the company’s plea seeking permission to transfer its plant in Sriperumbudur, near Chennai, to Microsoft. The ruling also leaves a question mark over the future of the plant’s 8,000 employees and the 24,000 people it employs indirectly. Nokia had filed the appeal after the Delhi High Court asked it to waive all rights to challenge the final order with regard to its tax dispute with the Government. The Court had also asked Nokia to deposit ₹2,250 crore in an escrow account and give an undertaking that it would meet any future tax liability. The Finnish company had signed an agreement to transfer all of its global assets to Microsoft as part of a $7.4 billion deal signed last year. If the tax issue is not resolved soon, the Chennai facility will not be transferred. If such a scenario arises, Nokia has said that it will use the unit as a contract manufacturing facility for a one-year period. It is not clear what will happen thereafter. The company has already shifted part of the manufacturing from Chennai to other countries to cushion the impact. *Nokia disappointed* A Nokia spokesperson said the company is disappointed by the apex court’s decision and it strongly believes its offer to the tax department is fair, allowing employees and assets to transfer to Microsoft while providing the necessary financial guarantees. Employees at the Nokia plant in Sriperumbudur said they were disappointed with the Supreme Court ruling. Nokia India Thozhilalar Sangam, an independent union, has made itself a party in the ongoing case. “We were hopeful of becoming a part of Microsoft. But today’s ruling has put a big question mark on our future,” said union leader Soundararajan, who is also the General Secretary of the Centre of Indian Trade Unions, Tamil Nadu. *New chief executive* Reuters reported that Rajeev Suri, the head of Nokia’s telecom network equipment division, is likely to become the Finnish group’s next chief executive following the sale of its handset business to Microsoft. (This article was published on March 14, 2014) -- CS A Rengarajan 9381011200 CS Benevolent Fund is a collective effort towards extending the much needed financial support to the community of Company Secretaries in times of distress Let us lend support and join for noble cause. SHARING KNOWLEDGE SKY IS THE LIMIT This mail and its attachments (if any) are confidential information intended for persons to whom the email is planned for delivery by the sender. 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Posted on: Sat, 15 Mar 2014 01:45:24 +0000
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