FTIL exits MCX by selling its 5 per cent stake in the market

MCX promoter Financial Technologies India Ltd (FTIL) which has been under regulatory glare, announced here today that it has exited the company by selling its remaining five per cent stake in the market.
"Without prejudice to legal rights and remedies, the company has sold its balance 5 per cent equity shares of MCX in the market and with this, the company holds no stake in the bourse," FTIL said in a statement here.
The company did not disclose the value of the proceeds nor the number of shares sold. The MCX counter closed 5.08 per cent up at Rs 856.85 on the BSE, taking its marker cap to Rs 4,370 crore today.

Earlier, the MCX said that commodity market regulator Forward Markets Commission (FMC) had okayed the 15 per cent stake sale to Kotak Mahindra Bank last month for Rs 459 crore.
In the same month, billionaire investor Rakesh Jhunjhunwala also picked up 1.96 per cent in MCX from FTIL, in a block deal, for Rs 66 crore.
The exit follows the December 2013 FMC order and SEBI's March 2014 order, both of which said that Jignesh Shah and his firm FTIL are not "fit and proper" to run any exchange in the country and could not hold more than two per cent stake in any bourse.

Shah, who was in jail until last week, from early May, for his alleged role in the Rs 5,600 crore scam in group company NSEL, founded the Multi-Commodity Exchange or MCX in November 2003 and then went on to set up a stock exchange this year called MCX-SX.