Volatility in the shares of Jignesh Shah-promoted Financial Technologies (FTIL) and its unit, Multi Commodity Exchange (MCX), intensified on Wednesday. The FTIL stock hit an upper circuit for a second consecutive session on Wednesday, even as it announced that it had brought down its stake in MCX to 20% after market hours. While FTIL closed at R268.05, MCX lost about a third of the gains it clocked on Tuesday and closed down R19.25, or 2.5%, at R749.75.

In an exchange filing, FTIL said it had sold about 20.40 lakh shares, or 4% of equity, of MCX in the open market, which led to a further dilution of its stake in the commodity derivatives exchange. According the data on exchanges, the combined value of the bulk deals carried out on BSE and NSE stood at R153.64 crore, with an aggregate value of R752.83 a share.

FTIL, the holding company of R5,600-crore scam-ridden National Spot Exchange (NSEL), is racing to bring down its stake in MCX after the commodity market regulator Forward Markets Commission (FMC) declared the technology company unfit to be an anchor investor in MCX and asked it to bring down its stake from 26% to 2%.

While the Bombay High court refused an interim stay on this FMC order, a further revision in the regulations announced in May this year required FTIL to completely exit its ownership in Indias most profitable commodity derivatives exchange.

Meanwhile, MCX changed its articles of association (AoA) in mid-June to drive FTIL for the stake dilution. Since the Bombay High court refused FTILs plea for a stay on the postal ballot required for this alteration on June 13, the MCX shares have rallied close to 30% and is currently trading at its highest level in a year.