MCX shares drop after Bank of Baroda exits bourse

Written by PTI | Mumbai | Updated: Jun 27 2014, 19:35pm hrs
Shares of Multi-Commodity Exchange of India (MCX) today fell after announcement that one of its investors, state-run Bank of Baroda, has sold its entire stake in the troubled bourse.

MCX shares were down nearly 1 per cent at Rs 608 in early afternoon trade at the BSE, after hitting a low of Rs 606.6 earlier in the morning.

After a board meeting, MCX said late last night that Bank of Baroda has withdrawn its nominee from the board following the divestment of its entire stake in the bourse.

However, the exchange did not disclose how much stake the public sector bank held in it.

State Bank of India, Corporation Bank and Bank of Baroda - all PSU lenders - had together bought 9.69 per cent in MCX in 2004 at a total investment of Rs 3.94 crore.

Corporation Bank has also been offloading its stake.

MCX is India's leading commodity exchange. Its trading volumes have fallen drastically since a payment crisis came to the fore in July last year at National Spot Exchange Ltd (NSEL), an entity set up by the erstwhile promoters of MCX.