The MCX Stock Exchange (MCX-SX) has divested 6.48% stake to Union Bank of India and Bank of India for Rs 87.5 crore. The banks have picked up shares through a primary offering at Rs 10 per share (of face value Re.1). MCX Stock Exchange is one of the India’s largest currency futures exchange with over 575 (SEBI registered) members including 17 banks. They have presence in over 451 cities and towns in India.
The MCX Stock Exchange said in a release that a total of 18% equity will be divested in the first round with Indian banks. Of this, UBI and Bank of India have picked up 6.48%, while an additional 11.52% equity will be divested with other prominent public & private banks. This process was “in process of completion", the statement said. The stake sale is in line with the regulatory requirements of SEBI.
Both UBI and BOI have also been partners in MCX, the parent and also India’s largest commodity derivative exchange. MCX Stock Exchange is the new national level stock exchange, and is recognised under section 4 of Securities Contract (Regulation) Act, 1956 by SEBI.
Ernst & Young had valued the currency market segment of the exchange at Rs.1390 crore. The daily average volume of the exchange has grown from Rs.324.78 crore in October 2008, when it started operations, to Rs 2923.46 crore in May 2009.
It also has a subsidiary, MCX-Stock Exchange Clearing Corporation (MCX-SX CCL), in which MCX-SX has a 51% equity. This is the second clearing corporation in the country, and is approved by SEBI and RBI. HDFC, ICICI, Union Bank, State Bank, Axis Bank, IndusInd Bank, Punjab National bank, Corporation Bank, Syndicate Bank, Vijaya Bank & YES Bank are among the 52 clearing members of the MCX-SX CCL offering their clearing services.