Amid all the issues plaguing the MCX-SX - with the CBI probe and its chairman GK Pillai quitting on Friday for personal reasons - there are questions about the exchange’s rights issue that is expected to be completed by this month end. The rights issue is around Rs 500 crore.
Most experts believe there won’t be any problem with the rights issue. Outgoing chairman Pillai himself said that the ongoing rights issue by the exchange is on track and it has received confirmation from several shareholders for participation.
MCX-SX hopes it will get growth capital over the next 30 days. However, sources say some investors are reluctant to participate in the rights issue. But the exchange hopes to garner around Rs 200-300 crore.
The earlier target of Rs 500 crore included Rs 300 crore of equity infusion into the clearing corporation, which may take a back seat given the fact that they have another 2 years to get the Rs 300 crore in equity.
But the expected Rs 200-300 crore that MCX-SX may get via the rights issue will be good enough for the next 1-2 years. Former LIC chief Thomas Matthew, who will be taking over as chairman from Pillai, is betting on convincing investors to participate in the rights issue so that it manages to raise atleast that much.
Another big segment that MCX-SX is betting on is the currency derivatives segment, where it has a significant market share. The exchange will be hoping for some relaxation from the Reserve Bank over allowing foreign institutional investors to participate in the currency derivatives segment and may also allow for extension of the currency derivatives segment from current 5 PM to 11.30 PM going forward.
If all these things fall into place, then it’ll give MCX-SX some kind of a breather.
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