Commodity bourse MCX today said that the capital markets regulator Securities and Exchange Board of India (Sebi) has relaxed norms to allow FTIL to bring down its stake to 1.99 per cent in the commodity bourse.
In a filing to the BSE, MCX said that it has received a communication from "Sebi granting relaxation from the strict enforcement of Regulation 36 of Sebi (ICDR) Regulations 2009 subject to conditions".
The relaxation is granted only for "the limited purpose" to enable Financial Technologies (FTIL) to comply with the commodity markets regulator Forward Markets Commission order dated December 17, 2013, it said.
"The relaxation has been granted considering the peculiar nature of the case and cannot be construed as a precedent to obtain similar exemptions in future," Sebi said in the communication to MCX.
Under the Sebi (ICDR) Regulations, Financial Technologies India Ltd (FTIL) is required to have at least 20 per cent of the post-offer equity share capital of MCX as promoters’ contribution till March 2015.
MCX had sought relaxation from this rule to enable FTIL comply with the FMC's December 2013 order that declared FTIL as unfit to run any exchanges and asked it to reduce its stake to 2 per cent from 26 per cent.
FMC had issued this order in the wake of the Rs 5,600 crore payment crisis at the FTIL's group firm National Spot Exchange Ltd (NSEL).
Jignesh Shah-led FTIL, which is in the divestment process, has already sold 6 per cent stake in MCX.
Last month, the company had announced that it has signed an agreement to sell 15 per cent of its stake in MCX to Kotak Mahindra Bank for Rs 459 crore.
Currently, FTIL is left with five per cent stake in MCX.