NSEL crisis: Bank of India sells MCX stake for over Rs 20 crore

Written by Press Trust of India | Mumbai | Updated: Sep 3 2013, 02:26am hrs
Jignesh Shah nselLast week, MCX Chairman Venkat Chary and five other directors of the commodity exchange resigned following implementation of new guidelines, including a bar on persons over 70 years of age holding board positions. Reuters
State-run Bank of India today sold its 1.03 per cent stake in Multi Commodity Exchange of India Ltd (MCX) for over Rs 20 crore through the open market.

NSEL and MCX are promoted by Jignesh Shah-headed Financial Technologies India Ltd (FTIL).

Bank of India, which held 5.25 lakh shares, or 1.03 per cent, in MCX as of the June quarter, offloaded its entire stake in the commodity exchange, according to information available with the bourses.

Brokers fume at NSEL crisis payout plan

The shares were sold at an average price of Rs 392.6, valuing the transaction at Rs 20.61 crore, the data showed. The buyers of the shares could not immediately be ascertained.

MCX shares surged 5 per cent to close at Rs 391.55 on the BSE today.

Last week, MCX Chairman Venkat Chary and five other directors of the commodity exchange resigned following implementation of new guidelines, including a bar on persons over 70 years of age holding board positions.

The development came on the heels of group company National Spot Exchange Ltd (NSEL) defaulting on the second payout for settling Rs 5,600 crore of dues after suspending trade on July 31 following the government's directions.