MCX Stock Exchange Ltd today received approval of institutional shareholders to raise funds through issue of shares to them on a proportionate basis. MCX-SX, the country's newest stock exchange that was set up by Jignesh Shah-led Financial Technologies, has recently recast its board and leadership structures after a major crisis hit National Spot Exchange Ltd (NSEL), another entity promoted by its founders.
Also Read: MCX-SX gets Sebi approval for IRF; launch this month
In a statement, MCX-SX said its board consulted the institutional shareholders of the exchange at a meeting held today and based on the broad consensus expressed therein on the need to raise capital through a rights issue. "...approved making rights issue of equity shares to existing shareholders...on 1:1 basis at a price of Rs 10 per share," the exchange said. It expects to complete the rights issue before mid-March, 2014.
In a rights issue, shares are issued by the companies to their existing investors as per their holding at a pre-determined price and ratio. Earlier this month, MCX-SX board had also "accorded its in-principle approval to make a 1:1 rights issue to existing shareholders." The Board has taken note of the Sebi's approval for the exchange to launch Interest Rate Futures (IRF) contracts in the currency derivatives Segment. These segment is expected to start trading shortly, the statement noted.
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