MCX-SX gets shareholders' nod for rights issue of shares

Tags: Stock Market
MCX Stock Exchange Ltd today received approval of institutional shareholders to raise funds through issue of shares to them on a proportionate basis.

MCX-SX, the country's newest stock exchange that was set up by Jignesh Shah-led Financial Technologies, has recently recast its board and leadership structures after a major crisis hit National Spot Exchange Ltd (NSEL), another entity promoted by its founders.

In a statement, MCX-SX said its board consulted the institutional shareholders of the exchange at a meeting held today and based on the broad consensus expressed therein on the need to raise capital through a rights issue.

"...Approved making rights issue of equity shares to existing shareholders...On 1:1 basis at a price of Rs 10 per share," the exchange said.

It expects to complete the rights issue before mid-March, 2014.

In a rights issue, shares are issued by the companies to their existing investors as per their holding at a pre-determined price and ratio.

Earlier this month, MCX-SX board had also "accorded its in-principle approval to make a 1:1 rights issue to existing shareholders."

The Board has taken note of the Sebi's approval for the exchange to launch Interest Rate Futures (IRF) contracts in the currency derivatives Segment. These segment is expected to start trading shortly, the statement noted.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • E-auction and eventual privatisation of coal industry are welcome steps

    The government’s decision to privatise the scam-ridden coal industry through a presidential ordinance will eventually end the monopoly of public sec

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Tushar Gandhi

Sustainable model for rural sanitation

Prime minister Narendra Modi has promised to build a toilet ...

Rajgopal Nidamboor

Synchronous balance is vital for one and all

Imagine that you are playing an electronic game, or actually ...

Shona Adhikari

When women to birds become a painter’s muses

This week the focus is on renowned artist Amitabha Banerjee, ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture