Home / Market / Stock-market-news /  MCX-SX allots equity shares to new investors

Mumbai: MCX Stock Exchange (MCX-SX) has sold shares to 12 new investors thereby raising its net worth above the mandatory 100 crore mark, which was one of the conditions laid down by the Securities and Exchange Board of India (Sebi) while renewing its licence.

According to a statement issued by the exchange, the board approved the sale to 12 entities post the conversion of warrants, which were earlier being held by Financial Technologies India Ltd (FTIL). The decision is subject to an approval from Sebi.

“With the current set of transfer of warrants and their exercise by third parties, the exchange has complied with the requirement of raising its undisputed net-worth, which now stands comfortably above the regulatory minimum," said the statement, without specifying the net worth.

Accordingly, the exchange hopes to introduce new contracts on its existing trading segments shortly, it added.

The 12 investors, who have been allotted shares, include Rakesh Jhunjhunwala, Trust Investment Advisors Pvt Ltd and Edelweiss Commodities Services Ltd.

On 25 November, FTIL announced that it has sold its 100% stake in MCX-SX comprising 27 million shares and 562.4 million warrants for a total consideration of 88.42 crore.

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, the Sebi passed a similar order, asking FTIL and Shah to exit all stock exchanges and clearing corporations. In May, the power sector regulator asked FTIL to exit the Indian Energy Exchange (IEX).FTIL has also sold its stakes in a number of its overseas exchange ventures since last December.

In September, Sebi renewed the licence of MCX-SX for a period of one year till 15 September 2015 subject to conditions related to net worth and its long-term business sustainability plan.

The capital markets regulator had barred the exchange from introducing any new contract before fulfilling the net worth requirements.

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