BSE seeks clarification on FTIL stake sale in MCX

On July 20, FTIL entered into a share purchase pact with Kotak Mahindra Bank to sell its 15% stake in MCX

BSE has sought clarifications from Jignesh Shah-led Financial Technologies (FTIL) with regard to the discounted price at which it had struck a deal with Kotak Mahindra Bank for sale of 15 per cent in Multi Commodity Exchange (MCX).

On July 20, FTIL entered into a share purchase agreement with Kotak Mahindra Bank to sell its 15 per cent stake in MCX for Rs 459 crore at Rs 664 a share, a discount of 24 per cent compared to the prevailing price the previous day.

In a filing to the BSE, FTIL said: "The exchange had vide email dated 21-7-2014 sought clarification from the company as to how the purchase price per share (amounting to approximately Rs 664) -a significant discount to the then prevailing market price per share - was in the interests of the shareholders of the company."

The BSE informed FTIL that the clarification has been sought based on Sebi guidelines dated November 18, 2013 pertaining to "Compliance with the provisions of Equity Listing Agreement by listed companies - Monitoring by Stock Exchanges," the filing said.

Efforts to reach FTIL did not yield any response.