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On Friday, the MCX board had announced these decisions, following a Forward Markets Commission (FMC) order that said FTIL wasn’t “fit and proper” to run the exchange. The MCX board had decided to direct depository participants to transfer FTIL’s shares in the exchange in excess of two per cent to an escrow account.
FTIL said, “The FMC order is pending with the Bombay High Court. Within the constraints imposed by the matter being sub judice, FTIL can only say the FMC order is not sustainable in law and will be vigorously contested…The MCX board should be aware of its own duties and legal obligations and any action that is inconsistent with law will meet an appropriate legal response to protect the interests of its shareholders.”
Saying mismanagement by FTIL had led to a Rs 5,600-crore payment crisis in subsidiary National Spot Exchange Ltd, the FMC had said FTIL wasn’t “fit and proper” to hold more than two per cent stake in MCX. As an anchor investor, FTIL currently holds 26 per cent stake. The FMC order has been challenged in the high court here.
Following the FMC order, the MCX board had given FTIL a month to reduce its stake in the exchange. But FTIL could not carry out the stake sale.
