FTIL might exit MCX this week

Market sources say a binding agreement to sell 15% stake could be signed this week for a share price Rs 700-750

On the one hand, Financial Technologies, the promoter of Multi-Commodity Exchange, is strongly opposing the latter's move to transfer its stake to an escrow account and is fighting the case in the Bombay High Court. On the other, it has started selling its stake in the open market. While billionaire investor Rakesh Jhunjhunwala bought 3.4 per cent stake last week, there are talks of a further stake sale to a leading private sector player. Market sources say a binding agreement to sell 15 per cent stake could be signed this week for a share price Rs 700-750. Even Jhunjhunwala may increase his holding, to the maximum permissible limit of five per cent.

Hindalco plans QIP

Hindalco, the aluminium major, is planning a $500-million qualified institutional placement in the next few months. According to market sources, the company is planning to seek shareholders' approval soon. "The company has already started talking to bankers and the entire process should take around 45-60 days," said a banker close to the development. The stock closed at Rs 166 on Friday, down 5.5 per cent.

MF sector gives up on FMPs

Shocked by the Union Budget's proposal to double taxation and treble the tenure of long-term capital gains tax, the mutual fund sector has decided to end the source of conflict - fixed maturity plans (FMPs). Market sources said the Association of Mutual Funds in India has written to the finance ministry, imploring them to implement this new tax regime only for close-ended debt funds (read FMPs). The letter argues that since the other debt schemes help to create a vibrant corporate bond market, these should be excluded from this regime. Even the Urjit Patel committee had said the tax arbitrage of FMPs vis-a-vis bank deposits should be taken away.