26 July 2024
Market regulator SEBI has ordered a forensic audit into the workings of the Metropolitan Stock Exchange (MSEI), formally known as MCX SX, on allegations of mismanagement and financial irregularities.
The audit has been ordered after a whistleblower and shareholders of the exchange sought scrutiny on several aspects including the money allegedly spent by MSEI, fearing the exchange was fast eroding its net worth that could soon fall below the regulatory requirement of ₹100 crore. On this MSEI's CEO said "MSEI’s current net worth is around ₹164 crores and the exchange was making efforts to save cost as a result of which “our losses came down significantly in last financial year and we continue to strive hard to grow the business".
Allegations are that MSEI spent dual office rent for premises at BKC and Kurla even when they occupied only one premise and caused a loss of around ₹1 crore. On this Kundu said, “The rental office deal was not cut by me. It was a bare-shell premise at Kurla. Due to Covid lockdown restrictions and to compensate for the cost, we renegotiated the rental and managed to save ₹80 lakh. Also, the offer to relocate me to India was in line with industry practice and the cost was sanctioned by the board and SEBI.”