FTIL seeks expression of interest for stake sale in MCX
Mar 10 2014 , New Delhi
The move follows FTIL's decision last month to appoint a committee to oversee a restructuring plan that includes divestment of up to 24 per cent stake in the Multi Commodity Exchange of India Ltd (MCX).
At present, FTIL has 26 per cent stake in MCX. Last week, Jignesh Shah-led FTIL appointed JM Financial Institutional Securities Ltd as financial advisor to facilitate divestment of stake in MCX.
In December, commodity market regulator FMC had said that FTIL is not 'fit and proper' to run exchanges in the country. The FMC order also said that FTIL could not hold anything more than 2 per cent shareholding in the MCX.
Following FMC order, the MCX board had asked FTIL to bring down stake in the bourse and also capped FTIL's voting rights at 2 per cent.
Regulator FMC had issued order following a probe into the operations of FTIL's group firm National Spot Exchange Ltd (NSEL) in connection with payment crisis of Rs 5,600 crore.
In a public notice issued today, FTIL invited "expression of interest for FTIL's 24 per cent stake in MCX".
The notice said the announcement is for the parties interested in expressing initial interest in the opportunity and it is not an offering/invitation for sale of securities.
A Committee nominated by the FTIL's board would shortlist interested parties in consultation with JM Financial, it said.
"JM Financial shall advise such shortlisted parties on the next steps required to be followed to enable them in making an assessment of the opportunity. Such shortlisted parties will then be invited to submit their offer for acquiring the stake," the notice said.