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Home / Companies / People /  FTIL concludes sale of its stake in MCX-SX

Mumbai: Financial Technologies (India) Ltd (FTIL) has completed its exit from the Metropolitan Stock Exchange of India Ltd, which was formerly known as MCX Stock Exchange of India Ltd (MCX-SX).

“Financial Technologies (India) Ltd has informed BSE that the company has concluded the transaction relating to sale of its stake in MCX-SX and received entire consideration for the same and has completely exited from MCX-SX," said a statement issued by FTIL to the stock exchanges.

In November, FTIL had said that it had entered into a share and warrant purchase agreement with investor Rakesh Jhunjhunwala and a separate agreement with a clutch of investors including Edelweiss Financial Services Ltd.

A total of 27 million equity shares and 562.46 million warrants were sold in the two deals for an aggregate consideration of 88.419 crore. FTIL held a 5% stake directly in MCX-SX along with warrants.

The sale is in line with regulatory orders. In December 2013, the Forward Markets Commission (FMC) declared FTIL and its promoter Jignesh Shah unfit to run a commodity exchange in the country, following a 5,574.34 crore fraud at the National Spot Exchange Ltd (NSEL). FTIL held a 99.99% stake in NSEL.

In March 2014, the Securities and Exchange Board of India (Sebi) passed a similar order, asking FTIL and Shah to exit all stock exchanges and clearing corporations.

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