Financial Technology India limited (FTIl) on Saturday announced that the company’s board has given an additional two weeks to shortlisted investors to submit their final bids for disinvesting their stak in Multi Commodity Exchnage (MCX).
FTIl, in its statement said, “The board deliberated on the divestment process and decided further time needs to be given in the light of the developments that have come on May 9.” Earlier, MCX decided to amend its articles of association to comply with the regulator's new shareholding norms for. The guidelines include a requirement for entities declared unfit to run an exchange to divest their entire stake immediately.
"The board decided to give two weeks time to complete the discussions and negotiations with the bidders and attain the final bid," it said. The board said all shortlisted bidders continue to be interested in the divestment. The next board meeting is scheduled on May 24, it added. FTIl was ordered to reduce its stake in MCX after the Forward Markets Commission, declared it unfit to run any exchanges in December last year. The company was required to pare its stake to 2 per cent from the existing 26 per cent following the Rs 5,600 crore payment crisis at the National Spot Exchange ltd.
FTIl owns 99.9 per cent stake in NSEl, which suspended spot trading in commodities and has been unable to settle payment of dues to investors. The stake sale has been delayed because bidders sought more time in view of a PwC audit report on related-party transactions between the exchange and FTIl group firms. FTIl said the board also took note of developments , including the sharing of the executive summary of the PwC audit report and the separate clarifications issued by both FTIl and MCX on the report.