Beleaguered stock exchange MCX-SX on Friday named former Life Insurance Corporation (LIC) Chairman Thomas Mathew T. as its new chairman.

Thomas Mathew T. will replace G. K. Pillai, who handed over his resignation to the exchange's board on Friday, citing personal reasons. The departure of Mr. Pillai, former secretary in the Union Home ministry, was no surprise as PTI on Thursday had reported that Mr. Pillai along with some public interest directors would resign soon. The exchange had refuted the report, terming it merely 'speculative and pre-emptive'.

Speaking on the condition of anonymity, an MCX-SX director said, "It's not true that all the board members were planning to quit. There was no such plan. Only Mr Pillai resigned . The regulator was instrumental in changing the entire board after the NSEL scam surfaced. And promoters have been removed."

While Mr. Pillai resigned citing reasons, sources said he gave his resignation because he didn't want to get entangled in a CBI probe. The federal investigating agency is probing market regulator Sebi's decision to approve MCX-SX in 2008 and renew recognition in 2009 and 2010. Earlier this week, it registered a preliminary enquiry against former Sebi chief CB Bhave and former Sebi member KM Abraham.

The MCX-SX also announced the appointment of Ashima Goyal, a professor at Indira Gandhi Institute of Development Research, as its vice-chairperson.

Stock in MCX-SX slipped as much as 17.53 per cent to Rs 425.25 a share on Friday, but later it managed to regain some of the lost ground and closed at Rs 492.65 apiece.