India's largest commodity exchange Multi Commodity Exchange of India Ltd or MCX, promoted by Financial Technologies India Ltd (FTIL, is looking to dilute its stake in Dubai Gold & Commodities Exchange, MCX Stock Exchange and MCX-SX Clearing Corporation. The company has invited bids to appoint investment advisors to offload the stake.
“MCX intends to divest its shareholding in a few ventures... the organisation needs investment/merchant bankers to strategically advise on the sale of these shares,” according to an advertisement issued by the commodity futures bourse.
Presently, MCX owns 3.4 per cent in Dubai Gold & Commodities, 26 per cent in MCX-SX Clearing and 5 per cent stake along with warrants worth Rs 63.42 crore in MCX-SX.
Meanwhile, MCX also said that its chief financial officer Hemant Vastani has stepped down from his position in the company and his resignation has been accepted.
In January, the company had appointed Manoj Vaish as its new MD and CEO after Shreekant Javalgekar stepped down as the MD and CEO of MCX last October amidst a probe related to the scam in group firm NSEL.
In October, Jignesh Shah, promoter of FTIL, resigned as non-executive vice chairman of MCX after commodities derivatives regulator Forward Markets Commission (FMC) said that FTIL and its promoter Shah are unfit to operate an exchange in the country in light of the scam.
Shah and FTIL moved Bombay High Court seeking stay on the FMC's order. Javalgekar and Joseph Massey, a former managing director and chief executive officer of MCX Stock Exchange Ltd and a former director of MCX, also challenged the regulator’s order through a writ petition in the court. These two were also declared unfit to hold any management position in any exchange recognised by the Indian government and FMC.
FMC had also directed FTIL – which owns 26 per cent stake in MCX -- and Shah to bring down their stake in the exchange to 2 per cent. Following this MCX board had also said asked its promoter FTIL, which in turn is backed by private equity firm Blackstone, to cut its stake in line with the FMC order.
(Edited by Joby Puthuparampil Johnson)