MCX-SX complies with Sebi norms as FTIL exits exchange

To comply with the conditions imposed by Sebi, MCX-SX today issued shares to 12 new investors, including Rakesh Jhunjhunwala, following which the erstwhile promoter FTIL will completely exit from the bourse.

hidden December 09, 2014 19:57:24 IST
MCX-SX complies with Sebi norms as FTIL exits exchange

To comply with the conditions imposed by Sebi, MCX-SX today issued shares to 12 new investors, including Rakesh Jhunjhunwala, following which the erstwhile promoter FTIL will completely exit from the bourse.

Besides, meeting other conditions, the exchange would also attain a prescribed networth of Rs 100 crore.

As the exchange has complied with conditions imposed by Sebi, MCX-SX (MCX Stock Exchange)is hopeful of introducing new contracts on its existing trading segments shortly.

In a statement, MCX-SX said that these 12 new investors will get the equity shares which were being held by Financial Technologies (India) Ltd or FTIL.

Post transfer of substantial chunk of warrants holding by FTIL to investors and the impending transfer of additional warrants and equity, FTIL will have completely exited MCX-SX.

With the current set of transfer of warrants and their exercise by third parties, the exchange has complied with the requirement of raising its net-worth, which now stands comfortably above the regulatory minimum.

Further, with this development, the exchange has complied with Sebi's condition for renewal of recognition.

"With this development, the exchange is hopeful of introducing new contracts in all existing segments shortly. We are sure that this is a very positive development and would help the exchange in rebuilding the confidence of all our stakeholders," MCX-SX Managing Director and CEO Saurabh Sarkar said.

"Our immediate focus would be to capitalize the exchange and building the business in our existing as well as new segments," he added.

Apart from Jhunjhunwala, the exchange issued shares to Trust Investment Advisors Pvt Ltd, Edelweiss Commodities Services, Viral A Parikh, Nemish S Shah as karta of Nemish S Shah HUF, Derive Investments, Kalpraj Dharamshi, Dhanesh Sumatilal Shah, Uday Shah, Madhuri Kela, Renuka Shah and Madhu Vadera Jayakumar.

PTI

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