FTIL gives extra time to submit bids for MCX stake

The guidelines include a requirement for entities declared unfit to run an exchange to divest their entire stake immediately.

By: Press Trust of India | New Delhi | Published: May 11, 2014 4:30 am

Financial Technologies (India) Limited, which is divesting its stake in MCX, on Saturday said the board has given an additional two weeks to shortlisted investors to submit their final bids.

“The board deliberated on the divestment process and decided further time needs to be given in the light of the developments that have come on May 9,” FTIL said in a filing to the BSE.

On Friday, MCX decided to amend its Articles of Association to comply with the regulator’s new shareholding norms for Indian commodity exchanges. The guidelines include a requirement for entities declared unfit to run an exchange to divest their entire stake immediately.

“The board decided to give two weeks time to complete the discussions and negotiations with the bidders and attain the final bid,” it said, adding all shortlisted bidders continue to be interested in the divestment. The next board meeting is scheduled on May 24, it added.

The sale of stake in MCX has been delayed because bidders sought more time in view of a PwC audit report on related-party transactions between MCX and FTIL group firms.

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