MCX board to meet on Wednesday

The board meeting that took place last Thursday could not discuss preferential share issue which was on agenda

The Multi Commodity Exchange (MCX) has informed the BSE that a meeting of its board of directors would be held on Wednesday. The meeting will consider issues on which the last board meeting on Thursday failed to take a decision. The Thursday’s meeting could not discuss preferential share issue.

Several investors of the exchange had said preferential issue was not in their interest. MCX being a cash rich exchange, there was no need to have such capital issue, some of them had felt. MCX had proposed the issue with an expectation to issue shares to a strategic partner who can counter Financial Technologies India Limited, which has to pare its stake from 26 per cent to below-two per cent.

FTIL is in the process of divesting its stake and last week it had warned the exchange of legal action in case if any of its decision harmed the valuation of MCX shares, which it was selling.