Even as Financial Technologies and Jignesh Shah have moved to the Bombay High Court (HC) challenging the Forward Markets Commission (FMC) order deeming them not 'fit and proper’ to run the exchange, CNBC-TV18 learns Universal Commodity Exchange (UCX) is in talks to buy FTIL's stake in MCX.
UCX is the sixth national commodity exchange and commenced operations in April 2013.
It may seek support from its government-backed shareholders like IDBI, NABARD and IFFCO etc, which hold 10-16 percent. CNBC-TV18 also learns that UCX is in initial discussions with two-three FIIs to buyout FTIL's stake in MCX.
Since, no institution can hold more than 5 percent in any exchange, UCX is expected to finalise their proposal only after it gets the backing of some key shareholders of MCX.
This process has just started and it will take a while before anything materialises since the case against FMC’s ‘fit and proper order’ is still to be heard in the Bombay HC. Only after the court’s ruling is UCX likely to submit their formal proposal to FMC.
Meanwhile, MCX is in the process of finalising a new MD and CEO.
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