Financial Technologies India (FTIL) has approached the Consumer Affairs Ministry seeking extension by six months to dilute its stake in the commodity exchange MCX to 26%.
The deadline for dilution of the stake expired on September 30.
"FTIL has sought extension till March 2012 as it is in the process of divesting the stake in the Multi Commodity Exchange (MCX) through an initial public offer (IPO) of the commodity exchange," a senior Consumer Affairs Ministry told PTI.
FTIL, the promoter of MCX, holds 31% in the commodity exchange.
The company has to dilute its stake to 26% in MCX to conform with the new guidelines prescribed by the commodity markets regulator FMC on the equity structure for the national commodity exchange.
Last month, MCX had received the approval of the market regulator Securities and Exchange Board of India (Sebi) for its Draft Red Herring Prospectus (DRHP) for an IPO.
MCX has got 12 months time from the date of the clearance of the DRHP by Sebi to launch an IPO.
Under the offer, some existing shareholders of MCX, including FTIL, plan to sell 6.4 million shares, constituting 12.6% of the company's paid-up equity capital.
MCX holds a market share of over 75% of the Indian commodity futures market. It offers futures trading in both agriculture and non-agriculture items.