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MCX Stock Exchange, which is attempting to wriggle out of the gloom cast by the ₹5,600-crore scam in its group company, has modified the proportion of the proposed rights issue on the back of alleged resistance from a few existing institutional investors.
Retains offer priceThe board of directors who met on Friday have proposed to issue one new share for every two shares against the earlier proposal of issuing one new share for every one share held. The offer price has been retained at ₹10 a share and is expected to be completed by this month end. The new proposal will lead to existing investors pumping in lesser money and will have nominal impact if they propose to rescind their rights.
On Friday, the exchange claimed that the rights issue has received good response, and has also received expression of interest from new investors. Hence, the exchange may consider allotment of unsubscribed rights issue to new investors on a preferential basis, said MCX-SX.
Financial Technologies and MCX, which owns 5 per cent each in the stock exchange, may not subscribe to the rights issue. The market regulator SEBI has ordered both companies to halve their holding in the stock exchange.
CBI’s suitIn a bid to quash widespread rumours on the exchange post-CBI crackdown on Thursday, Saurabh Sarkar, Managing Director, MCX-SX, said it would be speculative to pre-empt resignation of all public interest directors. Speaking at a press conference, he said the board meeting was not an emergency meeting and was planned a month in advance.
The CBI has filed a preliminary enquiry against former SEBI Chairman CB Bhave and ex-member KM Abraham for alleged irregularities in granting sanction to MCX-SX by SEBI in 2008 and renewing the recognition in 2009 and 2010.
CBI will probe into how the exchange was granted permission despite opposition by SEBI when Bhave was head of the regulatory authority. It was initially granted permission for only a limited segment of currency derivatives in 2008 with a condition that the licence would require approval every year. CBI also interrogated Jignesh Shah, promoter of Financial Technologies and MCX Stock Exchange, on Thursday.
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