FTIL set to dilute 24% in MCX; forms panel to oversee recast

Jignesh Shah-promoted Financial Technologies (FTIL) today appointed a committee to oversee its restructuring plan, which includes divesting up to 24 per cent stake in the Multi-Commodities Exchange (MCX).
At a meeting here, the board appointed a panel to propose and oversee a restructuring plan for FTIL in its efforts to charter a new growth path, a company release said.
The board, however, did not discuss the forensic audit conducted by PwC on MCX, it said. The forensic audit was conducted after an order by the commodities regulator FMC.
The committee comprises two independent directors Venkat Chary and S Rajendran, legal advisor Berjis Desai and whole- time director Dewang Neralla, the release said.

The recast plan will include exploring the possibility of identifying a strategic partner who will help drive growth and look for territories beyond financial markets, it said.
The plan will also include FTIL divesting up to 24 per cent in MCX in the long-term interest of both FTIL and MCX. The committee may consider divestment of FTIL's investment in other exchanges as a part of the restructuring.

The panel will appoint an investment bank of repute to conduct a transparent bidding process for the divestments as well as identifying strategic partners for FTIL.
Anil Singhvi, founder and CEO of Ican Advisors, has been appointed as corporate financial adviser to FTIL, it said. The committee has been given time up to 120 days to carry out the recast plan.

Meanwhile, MCX said it has received an interim report from the FMC and same was placed before the board last week. The board desired that the report be discussed with PwC before coming out with suggestions on actionable points.
The MCX audit committee has since interacted with PwC team. This is an interim report on which certain additional inputs have been sought by the audit committee and a final report is still awaited, the commodity bourse said.
Once the final report is submitted by PWC, the same will be deliberated upon by the audit committee and the board and outcome will be communicated to stock exchanges, it said.

However, it has been learnt MCX has decided to dump the PwC report and appoint Deloitte to get a fresh forensic audit done.
When contacted PwC said it is not aware of any such development, while Deloitte declined to comment, citing client confidentiality.