Bank of India sells stake in MCX for over Rs 20 crore

MUMBAI: State-run Bank of India on Monday sold its 1.03 per cent stake in Multi Commodity Exchange of India Ltd ( MCX) for over Rs 20 crore through the open market.

Bank of India, which held 5.25 lakh shares, or 1.03 per cent, in MCX as of the June quarter, offloaded its entire stake in the commodity exchange, according to information available with the bourses.

The shares were sold at an average price of Rs 392.6, valuing the transaction at Rs 20.61 crore, the data showed. The buyers of the shares could not immediately be ascertained. MCX shares surged 5 per cent to close at Rs 391.55 on the BSE today.

Last week, MCX Chairman Venkat Chary and five other directors of the commodity exchange resigned following implementation of new guidelines, including a bar on persons over 70 years of age holding board positions.

The development came on the heels of group company National Spot Exchange Ltd ( NSEL) defaulting on the second payout for settling Rs 5,600 crore of dues after suspending trade on July 31 following the government's directions.

NSEL and MCX are promoted by Jignesh Shah-headed Financial Technologies India Ltd.