Financial Technologies (India) Ltd (FTIL), promoter of the Multi-Commodity Exchange (MCX), has expressed its intention to pick 5% stake each in three regional stock exchanges (RSEs). A disclosure to this effect was made by the company on Thursday. The RSEs, in which it intends to pick up the stake, are Delhi Stock Exchange (DSE), Vadodara Stock Exchange (VSE) and Inter-Connected Stock Exchange (ISE).
In an announcement to BSE, FTIL said, ?Based on the proposals for de-mutualisation of various RSEs in India, the company has submitted its expression of interest (EoI) to invest up to 5% of the relevant paid up capital in some of the RSEs, subject to necessary regulatory approval.
Further, the company has informed that the company has now decided not to pursue any more investments in RSEs and any existing investments and/or any allotment of shares with reference to its submitted EoI in the RSEs will be retained as portfolio investments only.?
Devang Neralla, director – technology, FTIL, said, ?The disclosure to the stock exchange clearly says that whatever investment company is intending to make in these RSEs will be a portfolio investment and it does not intend to pursue any more investment in other RSEs.?
The Securities and Exchange Board of India (Sebi) cleared a proposal for setting up a separate exchange for small and medium enterprises (SMEs). There are several contenders for setting up such an exchange including BSE, NSE, ISE and FTIL. On setting up an SME exchange, Nerella said, ?I would not like to comment on the issue.? The FTIL stock on Friday touched intra-day high of Rs 2,594.90 before closing with gains of Rs 34.20 (up 1.35%) at Rs 2,588.75.