FTIL, MCX stocks fall over 4%

The market was agog with rumours that some of the directors MCX Stock Exchange — promoted by MCX and FTIL — are likely to step down in the wake of the latest CBI action.

Shares of Multi Commodity Exchange and Financial Technologies (India) Ltd — promoted by Jignesh Shah — fell by as much as 4.6 per cent as the CBI carried out searches at 15 locations across the country, including the offices of National Spot Exchange Limited (NSEL).

Shares of FTIL group entity MCX tanked 4.61 per cent to close the day at Rs 515.70 after falling 5 per cent to Rs 513.35 during the day on the BSE. FTIL’s scrip ended the day 4.35 per cent lower at Rs 378. The market was agog with rumours that some of the directors MCX Stock Exchange — promoted by MCX and FTIL — are likely to step down in the wake of the latest CBI action.

Former Union home secretary GK Pillai is the chairman of MCX-SX while former LIC chairman (current in charge) Thomas Mathew T is the vice chairman of the board. Ashima Goyal and CARE managing director DR Dogra are the other directors on its board. Saurabh Sarkar, former managing director of United Stock Exchange, is the MD & CEO of MCX-SX.

“There is apprehension that Sebi may be forced to take action against MCX-SX. Though MCX-SX is now professionally managed, things can get hot for the exchange if CBI finds any incriminating evidence about the grant of licence to the exchange,” said an institutional source.

Sebi had already issued a show-cause notice to the Jignesh Shah-promoted FTIL on December 20 asking it to explain why it should not be directed to divest its 5 per cent stake in MCX-SX. FTIL also holds minority stake in the Delhi Stock Exchange and the Vadodara Stock Exchange — bourses that fall under Sebi’s purview.