The Telegraph
Friday , February 21 , 2014
CIMA Gallary

MCX in selloff mode

Mumbai, Feb. 20: Multi Commodity Exchange of India Ltd (MCX) is looking to sell its stake in a few group entities.

The country’s largest commodity exchange today said it sought to appoint investment bankers for selling stakes in a “few ventures’’.

MCX did not disclose the ventures in which it intended to sell stakes. However, it is believed that the exchange could sell its shareholding in MCX-SX and Dubai Gold and Commodity Exchange (DGCX).

The commodity exchange holds around 3.4 per cent in DGCX and 5 per cent in MCX-SX in shares and warrants.

The development comes on the same day MCX announced the resignation of its chief financial officer Hemant Vastani.

MCX, in which Financial Technologies (India) Ltd currently holds a 26 per cent stake, has accepted Vastani’s resignation. It did not specify the reason for his resignation.

In October last year, Jignesh Shah had resigned as the non-executive vice-chairman of MCX.

Earlier, MCX managing director Shreekant Javalgekar had resigned from the company.

In a separate filing, MCX said it had approved 10,000 ESOPs (employee stock options) at Rs 516.50 per piece to the exchange’s CEO and managing director Manoj Vaish.

MCX recently asked Financial Technologies India Ltd (FTIL) to cut its stake to 2 per cent from 26 per cent following a directive from the Forward Markets Commission (FMC). The issue is pending in the Bombay high court.

The FMC had issued an order declaring FTIL and its chief Jignesh Shah unfit to run any exchange, including MCX, following a Rs 5,500-crore payment crisis at its group company National Spot Exchange Ltd (NSEL).

NSEL, which is promoted by FTIL, has been defaulting on payments to 13,000 investors. It plunged into a payment crisis after halting trading in commodities from August 1 on a government directive.