MCX Shares Dive 6.5% As CTO Resigns

Multi Commodity Exchange of India Ltd (MCX) has been facing a setback, with the resignation of its Chief Technology Officer (CTO) and the rising costs of its software.

Multi Commodity Exchange of India's (MCX) shares experienced a decline of over 6% on Wednesday, following the resignation of its Chief Technology Officer, Shashank Sathe.

According to the filing, the MCX stated that Sathe had resigned from his position as CTO citing "personal reasons and better prospects". However, investors were rattled by his departure, especially since the company was in the midst of rolling out a new platform that was set to be supplied by TCS.

During this time, the responsibilities of the Chief Technology Officer (CTO) at the company will be overseen by N Rajendran, the Chief Digital Officer. According to the company, Rajendran has been a part of the team since November 2021. Prior to joining MCX, he held the positions of CEO and Director at Indian Financial Technology & Allied Services (a subsidiary of RBI) and CTO at the National Payments Corporation of India (NPCI).

The stock price of the company closed at Rs 1,390.15 per share on the NSE, registering a fall of 6.55%. During the day, the shares experienced a sharp decline of 7.77% to reach an intra-day low of Rs 1,372. On the BSE, the stock price fell 6.32% to close at Rs 1,394.20 per share.

During the day, 80,000 shares of the company were traded on the BSE and 11.46 lakh shares on the NSE, in terms of volume. The BSE Sensex, consisting of 30 shares, ended the day at 60,300.58 points, up 0.28 percent or 169.87 points.

MCX announced on Tuesday that Shashank Sathe, the Chief Technology Officer (CTO) of the company, has resigned due to personal reasons and for better prospects. In the meantime, Dr. N Rajendran, the Chief Digital Officer of the company, has been asked to take over the CTO's responsibilities, according to the commodity exchange.