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.

EDITORIAL OF THE DAY

  • Right to reveal

    Delhi is India’s first state to announce a scheme for witness protection. But what about the witnesses in other states?

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Urs Schoettli

New masters of the Financial Times

A few days ago, Japan’s leading financial daily Nihon Keizai ...

Anuja Sharma

Focus mindfully to get the result

Have you ever tried to light a fire using the ...

Gautam Gupta

Our fashion schools need to notch it up

“Creativity is the key to success and primary education is ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture