FTIL scrip dips 3.5%, MCX 1.5% on forward market panel ruling
20 Dec 2013 5:50 AM IST
FTIL shares ended 3.45 per cent lower at Rs 161.05 on the BSE stock exchange. Similarly, MCX was down 1.48 per cent to Rs 415.10.
Shah founded Multi-Commodity Exchange (MCX) in November 2003 and then went on to set up a stock exchange this year. He is currently the chairman of Financial Technologies India Ltd (FTIL) which owns and runs National Spot Exchange Ltd (NSEL) where a Rs 5,500 crore payment crisis is being probed by multiple agencies.
In an 80-page order, the FMC, which went into the running of NSEL following payment defaults, held that FTIL is not a 'fit and proper person' to hold anything more than 2 per cent shareholding in the MCX.
FTIL currently has 26 per cent stake in MCX, the country's largest commodity exchange and will need to cut its stake following the FMC order. Meanwhile, , Multi Commodity Exchange (MCX) has called a meeting of its board on 26 December to decide on FMC’s order to cut promoters stake from 26 per cent to 2 per cent.
According to sources, FMC had directed on Wednesday MCX to call a board meeting to decide on timeline for reducing FTIL’s stake in the commodity exchange. Accordingly, the MCX has scheduled its board meeting for 26 December to discuss this issue among other agenda.
Sebi to rule on Shah’s MCX-SX link, CERC on FTIL’s IEX connection
New Delhi: After strictures passed by Forward Markets Commission (FMC) against Jignesh Shah as well as FTIL, capital market watchdog Securities and Exchange Board of India (Sebi) and power sector watchdog CERC are likely to soon take a call on the two entities’ association with MCX-SX and IEX, respectively.
Sources said that Securities and Exchange Board of India and Central Electricity Regulatory Commission (CERC) are likely to take a call on Shah and FTIL’s association with the two bourses.
While MCX-SX comes under the ambit of Sebi, IEX is regulated by CERC. Shah, who set up the MCX-SX, resigned from the stock exchange’s board as vice-chairman and shareholder director in October. Soon after, former Union Home Secretary Gopal Krishna Pillai as its chairman.
Besides him, the bourse’s managing director and CEO Joseph Massey had also put in his papers.
Meanwhile, Shah - who was instrumental in setting up the country’s first power exchange IEX - continues to remain its non-executive director.
Shah founded Multi-Commodity Exchange (MCX) in November 2003 and then went on to set up a stock exchange this year. He is currently the chairman of Financial Technologies India Ltd (FTIL) which owns and runs National Spot Exchange Ltd (NSEL) where a Rs 5,500 crore payment crisis is being probed by multiple agencies.
In an 80-page order, the FMC, which went into the running of NSEL following payment defaults, held that FTIL is not a 'fit and proper person' to hold anything more than 2 per cent shareholding in the MCX.
FTIL currently has 26 per cent stake in MCX, the country's largest commodity exchange and will need to cut its stake following the FMC order. Meanwhile, , Multi Commodity Exchange (MCX) has called a meeting of its board on 26 December to decide on FMC’s order to cut promoters stake from 26 per cent to 2 per cent.
According to sources, FMC had directed on Wednesday MCX to call a board meeting to decide on timeline for reducing FTIL’s stake in the commodity exchange. Accordingly, the MCX has scheduled its board meeting for 26 December to discuss this issue among other agenda.
Sebi to rule on Shah’s MCX-SX link, CERC on FTIL’s IEX connection
New Delhi: After strictures passed by Forward Markets Commission (FMC) against Jignesh Shah as well as FTIL, capital market watchdog Securities and Exchange Board of India (Sebi) and power sector watchdog CERC are likely to soon take a call on the two entities’ association with MCX-SX and IEX, respectively.
Sources said that Securities and Exchange Board of India and Central Electricity Regulatory Commission (CERC) are likely to take a call on Shah and FTIL’s association with the two bourses.
While MCX-SX comes under the ambit of Sebi, IEX is regulated by CERC. Shah, who set up the MCX-SX, resigned from the stock exchange’s board as vice-chairman and shareholder director in October. Soon after, former Union Home Secretary Gopal Krishna Pillai as its chairman.
Besides him, the bourse’s managing director and CEO Joseph Massey had also put in his papers.
Meanwhile, Shah - who was instrumental in setting up the country’s first power exchange IEX - continues to remain its non-executive director.
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