BackFTIL sells 2% stake in MCX
A spokesperson for FTIL confirmed that it has sold shares through block deals on BSE and National Stock Exchange
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Mumbai: Financial Technologies India Ltd (FTIL) on Tuesday sold a 2% stake in Multi Commodity Exchange of India Ltd (MCX) in the open market.
A spokesperson for FTIL confirmed that it has sold shares through block deals on BSE and National Stock Exchange Ltd (NSE). According to the shareholding data for the quarter ended 31 March, FTIL held a 26% stake in MCX.
Jignesh Shah-promoted FTIL has been declared unfit to run a commodity exchange by the Forward Markets Commission (FMC), which also directed it to reduce its stake in MCX.
FMC, in an order dated 17 December, 2013, ruled that FTIL was “not a ‘fit and proper person’ to continue to be a shareholder of 2% or more of the paid-up equity capital of MCX".
Thereafter, on 6 May, the commodities market regulator announced new guidelines for ownership and management of commodity bourses under which any entity declared unfit cannot hold any stake in a commodities exchange.
FTIL challenged the FMC order in the Bombay high court, which on 28 February, rejected its plea to issue an interim stay on the FMC order.
FTIL is currently under investigation by multiple agencies after a ₹ 5,574.35 crore payments crisis surfaced in end-July at National Spot Exchange Ltd (NSEL). It holds a 99.99% stake in NSEL.
Shares of MCX gained 4.18% or ₹ 27.25 to close at ₹ 679.70 on BSE.
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