Commodity market regulator FMC has approved Kotak Mahindra Bank’s deal to acquire 15 per cent stake in MCX for Rs. 459 crore from Jignesh Shah-led FTIL.
Forward Markets Commission (FMC) has also asked Kotak Mahindra Bank Ltd to disclose every year to commodity exchange MCX that it is in compliance with ‘fit and proper’ criteria.
“I am directed to convey the approval of the commission for your proposed acquisition up to 15 per cent of equity share capital of MCX,” FMC economic officer said in a letter written to the bank.
FMC asked Kotak Mahindra Bank to comply with the requirement of filing a declaration within 15 days from the end of every financial year to MCX that the company complies with the ‘fit and proper’ criteria.
In July, Financial Technologies India Ltd (FTIL) had announced that it has signed an agreement to sell 15 per cent stake in MCX to Kotak Mahindra Bank for Rs. 459 crore.
FTIL originally held a 26 per cent stake in MCX and it is divesting stake in MCX after market regulator FMC had declared the company 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 had asked FTIL to reduce its stake in MCX to 2 per cent from 26 per cent.
Before the Kotak deal, FTIL had 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.
