MCX asks FTIL to transfer stake to escrow

In a battle of ousting anchor investor, the largest bourse Multi Commodity Exchange (MCX) has reiterated demand to transfer shares of Financial Technologies (FTIL) in to an escrow account even as the company has initiated the process of divesting from the bourse in transparent manner.

Last week FTIL informed the regulator and the MCX that J M Finance an investment advisor appointed by it had already received 10 offers from reputed national and international players. Company also said that the process of divesting stake in MCX will be completed in 6-7 weeks.

However in response to this, MCX asked it to transfer shares in an escrow account with mutually agreeable trustee company to show their commitment. In case of shares not getting sold in committed time, MCX then will have a right to sell the shares though auction from Escrow account and remit the proceeds to the FTIL.

When contacted, FTIL spokesperson said that, "the process of stake sale is at advance stage and now those who have expressed intentions will be asked to submit non-binding offers before taking final decision." However, an insider in the company said that according to them MCX demand (asking it to transfer shares in escrow) is not tenable legally and also 'fit and proper' order is sub-juidice.

The issue of stake sale by FTIL arised after the commodity regulator said that it is not ?fit and proper person? to run MCX and hence should cut its stake from MCX from 26% to bring it below 2%.