The board of directors of MCX Stock Exchange (MCX-SX) at its meeting held on Tuesday has issued equity shares to 12 new investors, subject to post facto approval of Securities and Exchange Board of India (SEBI), where applicable, post their conversion of warrants which was earlier being held by FTIL.
These 12 investors includes Dr. Rakesh Jhunjhunwala, Trust Investment Advisors Private, Edelweiss Commodities Services, Viral A. Parikh, Nemish S. Shah as karta of Nemish S. Shah H.U.F., Derive Investments, Kalpraj Dharamshi, Dhanesh Sumatilal Shah, Uday Shah, Madhuri Kela, Renuka Shah and Madhu Vadera Jayakumar. Besides, Dr. Rakesh Jhunjhunwala would also be transferred the equity shares which were being held by FTIL.
Post transfer of substantial chunk of warrants holding by FTIL to investors as mentioned above, and the impending transfer of additional warrants and equity, FTIL will have completely exited MCX-SX.
With the current set of transfer of warrants and their exercise by third parties, the exchange has complied with the requirement of raising its undisputed net-worth, which now stands comfortably above the regulatory minimum. Further, with this development the most important conditions as enumerated in the letter dated Sept. 15, 2014 issued by SEBI for renewal of recognition have been met with. Accordingly, the exchange is hopeful of introducing new contracts on its existing trading segments shortly.
Saurabh Sarkar, MD & CEO, MCX-SX said that, ''We welcome the new investors who have reposed faith in us. With this development, the Exchange is hopeful of introducing new contracts in all existing segments shortly. We are sure that this is a very positive development and would help the exchange in rebuilding the confidence of all our stakeholders. Our immediate focus would be to capitalize the exchange and building the business in our existing as well as new segments.''
Shares of the company declined Rs 6.2, or 0.73%, to trade at Rs 847.90. The total volume of shares traded was 40,220 at the BSE (10.57 a.m., Wednesday).
