Financial Technologies India Ltd (FTIL) has appointed JM Financial Institutional Securities Limited (JM Financial) as its financial advisor for divestment of stake held in Multi Commodity Exchange of India (MCX).
Last month, the company had constituted a committee to propose and oversee its restructuring plan which included FTIL divesting up to 24 per cent in MCX.
Venkat Chary, independent director of FTIL and chairman of the committee, said, “FTIL has built MCX over the last 10 years as one of India’s top market infrastructure institutions in the commodity derivative space. I am confident that given JM Financials’ track record, it would help us bring best investors who will drive MCX to an era of renewed growth and development.”
The development follows an order by FMC in December that declared FTIL and its promoter Jignesh Shah unfit to operate an exchange in the country, in light of the National Spot Exchange Ltd (NSEL) scam. FMC also directed FTIL—which owns 26 per cent stake in MCX—and Shah to bring down their stake in the exchange to 2 per cent.
Following this, MCX board had also asked its promoter FTIL, which in turn is backed by private equity firm Blackstone, to cut its stake in line with the FMC order.
(Edited by Joby Puthuparampil Johnson)