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MCX stock exchange starts divestment process

MCX stock exchange starts divestment process
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First Published: Thu, Jun 04 2009. 07 51 PM IST
Updated: Thu, Jun 04 2009. 07 51 PM IST
Mumbai: The MCX Stock Exchange, or MCX SX, on Thursday announced it was initiating a divestment process that would include 18% stake in the first round with Indian banks. It has already sold a 6.48% to Union Bank of India and Bank of India through a primary offering of Rs10 per share – which has a face value of Re1 – for a total of Rs87.5 crore.
Joseph Massey, managing director and chief executive officer, said “Banks will be invited to have representation on the Board in proportion to their equity holding in the exchange on rotational basis.”
The exchange is also expecting on further 11.52% equity divestment to other banks. This disinvestment is in line with Sebi requirements and subject to further compliances, if any, the exchange said in a statement.
The stake divested will be with leading Indian public and private sector banks as strategic investors in the first round. MCX SX is a new national exchange, floated by parent MCX, India’s largest commodities derivative exchange. MCX SX, a currency futures exchange, has over 575 members registered with markets regulator Securities and Exchanges Board of India, or Sebi, including 17 banks.
It has also applied to Sebi to offer trading in equities. If approved, it will become the first greenfield equities exchange in India since the National Stock Exchange (NSE) was started about 15 years ago.
The proposed new stock exchange would also be the first with a common ownership and management in the post-demutualization era. Under Sebi regulations, no single shareholder can hold more than 5% in a stock exchange. For certain categories of financial institutions, the cap is 15%.
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First Published: Thu, Jun 04 2009. 07 51 PM IST