Comments
The MCX Stock Exchange plans to raise over ₹100 crore to fund its expansion plans and meet all the criteria listed out by SEBI by the year end.
On Monday, the regulator renewed recognition of the exchange for one year with many riders. The exchange was told to build its net worth (undisputed) to ₹100 crore as prescribed by the regulations, within three months.
In August, the exchange cancelled the warrants held by its promoter Financial Technologies and transferred ₹56.24 crore non-refundable interest-free deposit issued against the warrant to the capital reserve. This increased the exchange’s net worth to ₹160 crore from ₹110 crore. However, FTIL has disputed cancellation of the warrants and is exploring legal options.
Similarly, the Multi Commodity Exchange, a group company of FTIL, holds 5 per cent equity and 64.42 crore warrants in MCX-SX. MCX’s holding will rise to about 30 per cent if the warrants are converted into equity shares and this will lead to breaching shareholding norms which limit institutional holding in exchanges to about 15 per cent.
“We do have a challenging task at hand but with the renewal of licence in place we would now focus on the turnaround,” Saurabh Sarkar, MD &CEO, MCX-SX, said.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.