Kotak Mahindra Bank acquired 15 percent stake of FTIL in MCX for 459 crore rupees
Kotak Mahindra Bank on 29 September 2014 acquired 15 percent stake of Financial Technologies (India) Ltd (FTIL) in Multi Commodity Exchange (MCX) for 459 crore rupees.
Kotak Mahindra Bank on 29 September 2014 acquired 15 percent stake of Financial Technologies (India) Ltd (FTIL) in Multi Commodity Exchange (MCX) for 459 crore rupees. Kotak Bank acquired MCX shares at about 664 rupees a piece.
After the Forward Markets Commission declared FTIL as unfit to hold stake in the commodity exchange, FTIL was forced to offload its holding in the exchange.
Forward Market Commission declared FTIL unfit after its arm, National Spot Exchange, failed to settle trade worth 5600 crore rupees on its platform.
With this deal, FTIL managed to sell its entire 26 per cent shareholding in MCX for about 900 crore rupees. The deal lifts the embargo on MCX to launch contracts for the next calendar year.
Besides reducing the term of the technology contract, MCX will now pay FTIL a fixed charge of 1.5 crore rupees a month, including managed services payable in advance on a semi annual basis. Earlier, it was paying 2 crore rupees a month.
FTIL will also get a variable charge of 10.3 per cent of gross transaction fees, compared with 12.5 per cent earlier. MCX paid about 60 crore rupees to FTIL for receiving technological support and services last fiscal.
Earlier, FTIL concluded a long-term 10-year technology contract with MCX for providing software support and managed services on mutually agreed terms and conditions, and a further renewal as may be mutually agreed upon.