August 06, 2012

mcx stock exchange reports a loss during FY12

MCX Stock Exchange Ltd has reported a loss for financial year April 2011 to March 2012. The exact amount of loss is, however, not known as yet.

In a recent statutory filing, the company stated "The Exchange has commenced charging transaction fees since August 22, 2011 and has been making month-on-month profits ever since. However, there was still marginal loss during the financial 2011-12 since the commencement of transaction fees levy started after nearly five months of commencement of the financial year."

The stock exchange company's filing also gave an account of its past financial performance. It stated, "As per the audited figures for the period ended March 31, 2011, the Company had a total income of Rs 39.15 crore and incurred a net loss after tax of Rs 57.80 crore."

In a recent move, MCX Stock Exchange increased the remuneration of its managing director-cum-chief executive officer (MD-cum-CEO), Joseph Massey to Rs 2.4 crore per annum from Rs 1.8 crore.

The stock exchange company's statutory filing of the EGM (extra-ordinary general meeting) resolution of June 2, 2012, in this regard, stated "Resolved that... consent of the Company be and is hereby accorded for the re-appointment of Mr. Joseph Massey as the Managing Director and Chief Executive Officer of the Company for a further period of three years with effect from June 1, 2012 on a remuneration in the range of Rs 2.4 crore per annum to Rs 3.5 crore per annum (cost to company basis), with the starting remuneration being Rs 2.4 crore per annum."

As per the explanatory statement to this resolution giving in that filing, Joseph Massey was drawing a remuneration of Rs 1.8 crore in his first term as MD & CEO that was from June 1, 2009 to May 31, 2012.

MCX Stock Exchange is the latest stock exchange to receive regulatory approval to launch equity products and equity derivatives products. It has so far been trading in currency derivatives products.

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