MCX-SX promoters to reduce holding in bourse by Sep 2010
MCX Stock Exchange today said its promoters, which include Financial Technologies and commodity bourse MCX, will reduce stake in the exchange by September 2010 to comply with the SEBI guidelines.
By PTI |
NEW DELHI: MCX Stock Exchange today said its promoters, which include Financial Technologies and commodity bourse MCX, will reduce stake in the exchange by September 2010 to comply with the SEBI guidelines.
"We are working on it (dilution of stake), we have found some investors. We have been given time till September next year and we will definitely meet the target," MCX-SX Chairman Ashok Jha told reporters here on the sidelines of the India Economic Summit.
As per market regulator SEBI norms, no single entity can hold over 5 per cent in a bourse, barring some entities like stock exchanges and banks that are allowed up to a 15 per cent stake.
The exchange's promoters -- Financial Technologies (India) Ltd and commodity bourse Multi Commodity Exchange (MCX)-- have already divested a 30 per cent stake in the stock exchange to various public and private banks and institutions and would be required to offload 50 per cent more.
"We are required to meet the regulatory standards...we have not met in terms of divestment. The issue is as per the Securities Contract (Regulation) Act, no single entity or person can hold more than 5 per cent share in the exchange," Jha said.
After meeting the divestment requirement, the exchange's promoters are likely to jointly hold a 20 per cent stake. The exchange would also be allowed to trade products like interest futures on its platform.
"We are working on it (dilution of stake), we have found some investors. We have been given time till September next year and we will definitely meet the target," MCX-SX Chairman Ashok Jha told reporters here on the sidelines of the India Economic Summit.
As per market regulator SEBI norms, no single entity can hold over 5 per cent in a bourse, barring some entities like stock exchanges and banks that are allowed up to a 15 per cent stake.
The exchange's promoters -- Financial Technologies (India) Ltd and commodity bourse Multi Commodity Exchange (MCX)-- have already divested a 30 per cent stake in the stock exchange to various public and private banks and institutions and would be required to offload 50 per cent more.
"We are required to meet the regulatory standards...we have not met in terms of divestment. The issue is as per the Securities Contract (Regulation) Act, no single entity or person can hold more than 5 per cent share in the exchange," Jha said.
After meeting the divestment requirement, the exchange's promoters are likely to jointly hold a 20 per cent stake. The exchange would also be allowed to trade products like interest futures on its platform.
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