India’s Multi Commodity Exchange (MCX) is planning to sell its stakes in the Dubai Gold and Commodity Exchange (DGCX) to raise resources, the Economic Times reported.
MCX currently holds 3.4% in DGCX, currently valued at $1. The Indian exchange had held 10 per cent stake in DGCX when it began operations in 2005, but it was later reduced to 5 per cent. In October last year, this was further reduced to 3.4 per cent through rights issue option.
MCX is promoted by Financial Technologies India Ltd (FTIL), which currently holds 39 per cent DGCX. FTIL is a co-promoter in DGCX. DMCC, which owns a 51 per cent stake in DGCX, had the first right of refusal for holding of the two Indian companies.
On Thursday, MCX issued an advertisement, stating its intention to divest stake in a few ventures. Later in the day, Hemant Vastani, CFO of MCX, resigned.
Manoj Vaish, the new managing director and CEO of the exchange, stepped in following an overhaul of the MCX board. In December, commodity marker regulator Forward Markets Commission (FMC) said that promoter company Financial Technologies and some of the directors were not “fit and proper” to run MCX. Financial Technologies (FTIL) holds 26% in MCX, which FMC has directed them to bring down to 2%.
In July 2012, market regulator Sebi had asked MCX and FTIL, which jointly hold 10% stake, to reduce their holding to 5% by January 18, 2014.
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