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Wednesday, February 05, 2014

MCX Board meet on Feb 7 to decide on FTIL's stake cut

Crisis-hit MCX today said its board of directors is scheduled to meet on February 7 to take a call on the matter of time-bound action plan to ensure its promoter FTIL cuts stake to comply with regulatory norm.

"A Board meeting of the company is scheduled to be held on February 7 to consider and decide the future course of action with respect to FMC letter dated January 31, 2014," MCX said in a BSE filing.

According to the FMC letter, MCX has been given time till February 10 to submit a time-bound action plan to implement the FMC order that held FTIL is not 'fit and proper' to hold anything more than 2 per cent shareholding in the MCX.

On December 17 last year, the FMC had issued an order, declaring Financial Technologies India Ltd (FTIL) and its chief Jignesh Shah unfit to run any exchange, including the MCX, following a Rs 5,600-crore payment crisis erupting at group company National Spot Exchange Ltd (NSEL).

Meanwhile, FTIL and Shah have already moved the Bombay High Court, challenging the FMC order.

The NSEL, which is promoted by FTIL, has been defaulting on payments to 13,000 investors. It plunged into the payment crisis after halting trading in commodities from late July last year on a government directive.