New Delhi: To facilitate divestment by erstwhile promoters of MCX, SEBI has relaxed lock in period for such stake sale in the commodity bourse.
SEBI has allowed Financial Technologies to bring down its stake to 1.99 percent in MCX.
The relaxation has been given in order to allow Financial Technologies (India) Ltd (FTIL) to comply with directions from Forward Markets Commission (FMC) issued in December 2013.
In a communication to MCX today, the Securities and Exchange Board of India (SEBI) said the relaxation has been granted considering the peculair nature of the case and cannot be construed as a precedent to obtain similar exemptions in future.
It would be applicable "only for the limited purpose" to enable FTIL comply with the FMC order.
"Post divestment, MCX shall ensure that FTIL continues to lock-in at least 1.99 percent of the paid up capital of MCX for the unexpired period of lock-in," SEBI said.
Under SEBI (ICDR) Regulations, FTIL is to have at least 20 percent of the post-offer equity share capital of MCX as promoters' contribution till March 2015.
MCX had sought relaxation from this rule.
In the wake of the Rs 5,600 crore payment crisis at group firm National Spot Exchange Ltd, FMC had ruled that FTIL was unfit to run any exchange.
FMC had also asked FTIL to reduce its stake in MCX to 2 percent from 26 percent.
On Sunday, FTIL announced sale of 15 percent stake in MCX to Kotak Mahindra Bank for Rs 459 crore.
FTIL originally held a 26 percent stake in commodity exchange MCX.
Earlier this month, it had sold 6 percent stake in MCX in two rounds for about Rs 220 crore, bringing down its shareholding to 20 percent.
After an agreement with Kotak Mahindra bank to sell 15 percent stake, FTIL is left with 5 percent stake in MCX.
