MCX approaches SEBI for retaining stake in MCX-SX, MCX-SX CCL

Country’s largest commodity exchange MCX has requested SEBI to allow the company to retain its stake in MCX-SX…

By: PTI | New Delhi | Published: November 15, 2014 9:12:56 pm
In the representation made by MCX to the market watchdog SEBI, it has said that the company and FTIL no longer act in concert. (Reuters) In the representation made by MCX to the market watchdog SEBI, it has said that the company and FTIL no longer act in concert. (Reuters)

Country’s largest commodity exchange MCX has requested SEBI to allow the company to retain its stake in MCX-SX and MCX-SX CCL.

In the wake of the payment crisis at FTIL-founded firm National Spot Exchange Ltd (NSEL), MCX was asked by SEBI to sell its stake in NSEL as it was part of the same group at that time. The Jignesh Shah-led Financial Technologies (India) Ltd is no more promoter is in MCX and therefore the commodity exchange sought SEBI’s permission to retain its stake.

In the representation made by MCX to the market watchdog SEBI, it has said that the company and FTIL no longer act in concert.

“The company vide its letter dated October 31, has once again represented to SEBI that FTIL and the company has no longer act in concert, especially in view of the recent developments and therefore the company should not be required to divest its holding in MCX-SX and MCX-SX CCL,” MCX said in a filing.

Whereas FTIL, the original promoters of MCX has already exited from the exchange in August this year by selling its residual 5 per cent stake.

As on September 30, MCX has investments in 2.71 crore equity shares and 63.41 crore warrants of MCX Stock Exchange (MCX-SX) and investments in 65 lakh equity shares of MCX-SX Clearing Corporation Ltd (MCX-SX CCL).

In the wake of the payment crisis at group firm National Spot Exchange Ltd (NSEL), Sebi in March had ruled that Jignesh Shah-led Financial Technologies (India) Ltd was not ‘fit and proper’ to own stakes in any stock exchange or clearing corporation.

An earlier request in this regard by MCX was rejected.

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