BSE orders FTIL to explain MCX stake sale to Kotak
3 Aug 2014 3:47 AM IST
The BSE has sought clarifications from Jignesh Shah-led Financial Technologies with regard to the discounted price at which it had struck a deal with Kotak Mahindra Bank for sale of 15 per cent in MCX. On July 20, the Financial Technologies India Ltd (FTIL) had announced that it it had entered into an agreement with Kotak Mahindra Bank to sell 15 per cent stake held in MCX for about Rs 459 crore.
In a filing to the BSE, FTIL said, ‘The exchange had vide email dated 21-7-2014 sought clarification from the company as to how the purchase price per share (amounting to approximately Rs 664), a significant discount to the then prevailing market price per share, was in the interests of the shareholders of the company.’
The deal with Kotak was announced on July 20 which was a Sunday. The trading price previous to that was Rs 786.25 on July 18, as per BSE data. FTIL was sent reminders on this issue vide mail. To which, FTIL replied yesterday asking BSE that under which clause of the Listing Agreement the exchange was seeking clarification.
The BSE on Friday informed FTIL that the clarification has been sought based on Sebi guidelines dated November 18, 2013 pertaining to ‘Compliance with the provisions of Equity Listing Agreement by listed companies — Monitoring by Stock Exchanges,’ the filing said.
FTIL said that a reply to BSE is ‘awaited’ on this issue. Financial Technologies India Ltd (FTIL) originally held a 26 per cent stake in commodity exchange MCX.
Earlier this month, it sold 6 per cent stake in MCX in two rounds for about Rs 220 crore, bringing down its shareholding to 20 per cent. After an agreement with Kotak Mahindra bank to sell 15 per cent stake, FTIL is left with 5 per cent stake in MCX.
FTIL is divesting its 26 per cent stake in MCX?after market regulator FMC had declared FTIL unfit to run any exchange in the wake of Rs 5,600 crore payment crisis at group company National Spot Exchange Ltd (NSEL). The regulator asked FTIL to reduce its stake in MCX to 2 per cent from 26 per cent.
In a filing to the BSE, FTIL said, ‘The exchange had vide email dated 21-7-2014 sought clarification from the company as to how the purchase price per share (amounting to approximately Rs 664), a significant discount to the then prevailing market price per share, was in the interests of the shareholders of the company.’
The deal with Kotak was announced on July 20 which was a Sunday. The trading price previous to that was Rs 786.25 on July 18, as per BSE data. FTIL was sent reminders on this issue vide mail. To which, FTIL replied yesterday asking BSE that under which clause of the Listing Agreement the exchange was seeking clarification.
The BSE on Friday informed FTIL that the clarification has been sought based on Sebi guidelines dated November 18, 2013 pertaining to ‘Compliance with the provisions of Equity Listing Agreement by listed companies — Monitoring by Stock Exchanges,’ the filing said.
FTIL said that a reply to BSE is ‘awaited’ on this issue. Financial Technologies India Ltd (FTIL) originally held a 26 per cent stake in commodity exchange MCX.
Earlier this month, it sold 6 per cent stake in MCX in two rounds for about Rs 220 crore, bringing down its shareholding to 20 per cent. After an agreement with Kotak Mahindra bank to sell 15 per cent stake, FTIL is left with 5 per cent stake in MCX.
FTIL is divesting its 26 per cent stake in MCX?after market regulator FMC had declared FTIL unfit to run any exchange in the wake of Rs 5,600 crore payment crisis at group company National Spot Exchange Ltd (NSEL). The regulator asked FTIL to reduce its stake in MCX to 2 per cent from 26 per cent.
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