No decision by MCX board on FTIL's stake reduction plan

Press Trust of India Posted online: Friday, Feb 07, 2014 at 0000 hrs
Mumbai : The board of directors of Multi Commodity Exchange of India Ltd (MCX) today did not take any decision on the matter of a time-bound action plan to ensure that its promoter Financial Technologies India Ltd (FTIL) cuts stake to comply with a Forward Markets Commission order.

No major decision was taken in today's board meeting and board plans to write to FMC, saying the regulator has to decide the next course of action, exchange sources said here.

MCX has been given time till February 10 to submit a time-bound action plan to implement the FMC order that held FTIL was not `fit and proper' to hold anything over a 2 per cent shareholding in the MCX.

On December 17 last year, the FMC had issued an order declaring Financial Technologies India Ltd and its chief Jignesh Shah unfit to run any exchange, including the MCX, following the Rs 5,600-crore payment crisis at group company National Spot Exchange Ltd (NSEL).

FTIL and Shah have already moved the Bombay High Court, challenging the FMC order.