FTIL, MCX edge higher

Shares of Financial Technology (India) and Multi Commodity Exchange of India rose 1.59% to 4.48% at 14:12 IST on BSE after FTIL executed a supplementary agreement with MCX for providing software support & managed services until 2022.

Financial Technologies (India) (FTIL) (up 4.48% at Rs 227.20) and Multi Commodity Exchange of India (MCX) (up 1.59% at Rs 799) edged higher.

Meanwhile, the S&P BSE Sensex was up 45.62 points or 0.17% at 26,671.94.

Financial Technologies (India) (FTIL) before market hours today, 29 September 2014 said that on 27 September 2014, FTIL & Multi Commodity Exchange of India (MCX) have executed a master amendment to principal agreements (Supplementary Agreement) for providing software support & managed services on mutually agreed terms & conditions until the year 2022 and further renewal as may be mutually agreed between the parties. The inter cilia commercial terms & conditions of the Supplementary Agreement are viz. Fixed charges Rs 1.5 crore per month including managed services payable in advance on semiannual basis. Variable charges 10.3% of gross transaction fees, by whatever name called to be paid in 30 days. Due to this Supplementary Agreement, and based on the current volume of MCX and assuming MCX daily volume remain same, the negative impact on the total income of the company would be around Rs 8.82 crore for the period 2014-15, FTIL said.

With this development, MCX can now initiate the process to launch contracts up to March 2015. MCX said it is confident that it will be allowed to launch all its contracts for the year 2015 once the full divestment by FTIL of its stake in MCX takes place in compliance of the FMC order dated 17 December 2013.

MCX's net profit fell 61.1% to Rs 23.41 crore on 61.4% decline in net sales to Rs 47.38 crore in Q1 June 2014 over Q1 June 2013.

MCX is India's first listed, national-level, electronic, commodity futures exchange with permanent recognition from the Government of India.

FTIL's net profit rose 57.93% to Rs 128.24 crore on 27.43% increase in total income to Rs 216.05 crore in Q1 June 2014 over Q1 June 2013.

FTIL is among the global leaders in offering technology IP (Intellectual Property) and domain expertise to create and trade on next generation financial markets. It is a global leader in creating and operating next-generation tech centric financial exchanges.

Powered by Capital Market - Live News