FTIL inks pact with Rakesh Jhunjhunwala, Edelweiss to exit MCX-SX

New Delhi: Financial Technologies India Ltd today inked a pact with ace investor Rakesh Jhunjhunwala, financial major Edelweiss and others to sell its entire five per cent stake in MCX-SX stock exchange for Rs 88.41 crore.

FTIL has been in trouble ever since the Rs 5,600 crore payment scam surfaced at group firm NSEL in July last year. The group has started exiting from the exchange business both in India and abroad after commodity markets regulator FMC order in December 2013 declared FTIL and its founder Jignesh Shah as unfit to run any exchanges in view of this scam.

In a statement, the company said, "FTIL today entered into a 'Share and Warrant Purchase Agreement' with Rakesh Jhunjhunwala and separate 'Warrant Purchase agreements' with Edelweiss Financial Services" an other investors for sale ofits 100 per cent stake in MCX-SX comprising of 2,70,00,000 equity shares and 56,24,60,000 warrants for an aggregate consideration of Rs 88.419 crore."

FTIL has signed separate pacts for sale of equity as well as warrants with investors including Trust Investment Advisors, Viral A. Parikh, Nemish S. Shah HUF, DeriveInvestments, Kalpraj Dharamshi, Dhanesh Sumatilal Shah, Uday Shah, Madhuri Kela, Renuka Shah, SKS Capital & Research and Madhu Vadera Jayakumar, the statement added.

The transaction would be subject to fulfillment of certain condition precedents including regulatory approvals, the company added.

MCX-SX offers platform for trading in Capital Market, Futures & Options, Currency Derivatives and Debt Market segments. MCX-SX commenced operations in the Currency Derivatives (CD) Segment on 7 October, 2008, under the regulatory framework of SEBI and RBI.

MCX-SX launched Capital Market Segment, Futures and Options Segment and flagship index 'SX40' on 9 February, 2013 and commenced trading from 11 February, 2013.

The company has already exited MCX, IEX and overseas bourses Singapore Merchantile Exchange (SMX) and Bourse Africa Ltd. It is in the process of selling stake in Dubai Gold and Commodities Exchange (DGCX).

FTIL is focussing on its core technology business after exiting from the exchange business. Shares of FTIL today dropped 2.48 per cent to end Rs 180.85 apiece on the BSE, whose benchmark Sensex fell 0.57 per cent.


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Updated Date: Dec 21, 2014 17:57:15 IST