FTIL board to meet on May 30 to review MCX stake sale

The board deliberated on the divestment process and decided that further time needs to be given in light of arrest of Jignesh Shah

The restructuring committee of the board of Financial Technologies (India) Ltd will meet on May 30 to review the divestment process in MCX.

The Board of Directors, at a meeting here today, took note of the ongoing discussions with the bidders for sale of stake by Jignesh Shah-promoted Financial Technologies (India) Ltd (FTIL) in Multi-Commodity Exchange (MCX).

The board noted that discussions have not yet been completed. The investment banker expects finality to the transaction if there are no new developments. The board's restructuring committee will meet on May 30 to review the situation, FTIL said in a statement here.

In the second week of May, the FTIL board gave two weeks time to complete negotiations with bidders for divestment.

The board deliberated on the divestment process and decided that further time needs to be given in light of arrest of Shah by Mumbai Police in connection with the payment crisis at National Spot Exchange Ltd (NSEL), a group firm of FTIL.

Commodity exchanges regulator FMC, which went into the running of NSEL, following a Rs 5,500 crore payment crisis that came into light in July last, issued an order in December declaring FTIL 'not fit and proper' to run any bourse and also asking it to dilute its 26 per cent stake in MCX.