MCX has been given time till 10th February to submit a time-bound action plan to ensure its promoter Financial Technologies cuts stake in the Exchange to 2%
Crisis-hit Multi-Commodity Exchange of India Ltd (MCX) has said its board of directors is scheduled to meet on 7th February to take a call on the matter of time-bound action plan to ensure its promoter Financial Technologies India Ltd (FTIL) cuts stake to comply with regulatory norm.
In a regulatory filing, the country's largest commodity exchange said, “A Board meeting of the company is scheduled to be held on 7th February to consider and decide the future course of action with respect to Forward Markets Commission (FMC) letter dated 31 January 2014.”
According to the letter, MCX has been given time till 10th February to submit a time-bound action plan to implement the FMC order that held FTIL is not ‘fit and proper’ to hold anything more than 2% shareholding in the MCX.
On 17th December last year, the commodities market regulator issued an order, declaring FTIL and its chief Jignesh Shah, and two other directors, Joseph Massey and Shreekant Javalgekar as unfit to run any exchange, including the MCX, following a Rs5,600-crore payment crisis erupting at group company National Spot Exchange Ltd (NSEL).
Meanwhile, FTIL and Shah have already moved the Bombay High Court, challenging the FMC order.
The NSEL, which is promoted by FTIL, has been defaulting on payments to 13,000 investors. It plunged into the payment crisis after halting trading in commodities from late July last year on a government directive.
Inside story of the National Stock Exchange’s amazing success, leading to hubris, regulatory capture and algo scam
Fiercely independent and pro-consumer information on personal finance.
1-year online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
30-day online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
Complete access to Moneylife archives since inception ( till the date of your subscription )
