BSE seeks clarity from FTIL on MCX stake sale
The BSE has sought clarification from FTIL as to how the purchase price per share was in the interests of the shareholders of the company
Mumbai: BSE Ltd. has sought a clarification from Financial Technologies (India) Ltd. (FTIL) regarding the price at which the company sold a 15% stake in Multi Commodity Exchange of India Ltd. (MCX) to Kotak Mahindra Bank Ltd.
In a statement issued to the stock exchanges, FTIL said that “the exchange (BSE) had vide email dated 21/7/2014 sought clarification from the company as to how the purchase price per share (amounting to approx Rs664/-)—a significant discount to the then prevailing market price per share, was in the interests of the shareholders of the company."
On 20 July (Sunday), FTIL announced the sale of a 15% stake to Kotak Mahindra Bank for a total consideration of around Rs459 crore. Earlier, on 8 July, private investor Rakesh Jhunjhunwala bought 1 million shares of MCX from FTIL at Rs664 per share through a bulk deal.
Shares of FTIL closed at Rs786.25 on 18 July on BSE. On Monday, 21 July, the shares gained nearly 8% to close at Rs847.85.
According to the stock exchange statement, FTIL had sought clarity from BSE regarding the clause of the Listing Agreement under which the exchange is seeking a reply from the company.
“The exchange has informed the company today that the clarification is sought in terms of Point 4 (A) of SEBI circular… pertaining to ‘Compliance with the provisions of Equity Listing Agreement by listed companies - Monitoring by Stock Exchanges’," said the FTIL statement.
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