The crisis-hit MCX on Wednesday said its board of directors is scheduled to meet on February 7 to take a call on a time-bound action plan to ensure its promoter, FTIL, cuts stake to comply with regulatory norms. “A board meeting of the company is scheduled to be held on February 7 to consider and decide the future course of action with respect to an FMC letter dated January 31, 2014,” MCX said in a BSE filing.
According to the FMC letter, MCX has been given till February 10 to submit a time-bound action plan to implement the FMC order, which held that FTIL is not ‘fit and proper’ to hold more than 2% shareholding in the MCX.
On December 17 last year, the FMC had issued an order, declaring Financial Technologies India (FTIL) and its chief, Jignesh Shah, unfit to run any exchange, including the MCX, following a R5,600-crore payment crisis at group company National Spot Exchange (NSEL).
Meanwhile, FTIL and Shah have already moved the Bombay High Court, challenging the FMC order. The NSEL, which is promoted by FTIL, has defaulted on payments to 13,000 investors. It plunged into the payment crisis after halting trading in commodities from late July last year on a government directive.