Heard on the Street: FT, MCX may not cut stakes in MCX-SX

Both MCX and Financial Technologies (FT) are likely to retain their 5% stake each in equity exchange MCX-SX. This despite the fact that Sebi wants the two firms to hold a combined stake of 5%, the ceiling for a single group as per Sebi’s minimum public shareholding norms for stock exchanges.

But legal experts close to FT and MCX point out that the MCX board has been recast and that Jignesh Shah, the promoter, has no role to play in the commodity bourse.

Other key FT officials also do not have a place on the board. MCX has set a January 26 deadline for FT to bring down its stake to 2% in the commodity exchange from 26%..

Experts say these show that FT and MCX are at an arm’s length now and that there is no need to cut stake in the equity bourse.