MCX board to decide on FTIL stake today

MUMBAI, Aug 17 (Business Standard): The Multi Commodity Exchange (MCX) board will meet on Monday to decide, among other things, whether the remaining stake of its embattled promoter should be transferred to an escrow account.
MCX is under pressure from commodities markets regulator Forward Markets Commission to sell the remaining stake held in it by Financial Technologies.
The FMC had earlier asked MCX to ensure that FTIL divests its entire stake as it was declared not fit and proper to run the exchange. FTIL has so far managed to sell 21 per cent out of its 26 per cent holding.
The FMC has also made approval of any of MCX's proposals conditional on the stake sale; the under-pressure board will consider whether the remaining 5 per cent can be moved to an escrow account for sale at a later date.
One of the main hurdles in the divestment plan is that there remains a lock-in on 2 per cent of its stake. Capital markets regulator Securities and Exchange Board of India, or Sebi, had earlier removed the lock-in stipulation on 18 per cent of the stake, which enabled FTIL to sell 15 per cent to Kotak.
Even if MCX transfers FTIL's share to escrow, it can only sell 3 per cent due to the lock-in clause. However, if the lock-in is lifted, it will allow MCX to sell the entire 5 per cent to a single investor. US-based CME group, one of the world's largest exchange groups, has been reported to be interested in picking up FTIL's 5 per cent.
Both FMC and MCX, have already recommended to the Sebi that the remaining lock-in of FTIL's stake in MCX be removed, sources said.