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Kotak Mahindra Bank is in no mood to sell its 15% stake in MCX: Uday Kotak

12 June, 2018 1:25 PM
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Kotak Mahindra Bank is not looking to sell its 15 percent stake in Multi Commodity Exchange (MCX), according to the bank’s managing director Uday Kotak.

Kotak said he has no plans to sell stake in the India’s largest commodity exchange. “We have no intention to sell stake. We continue to hold shares in MCX,� he told Moneycontrol on the sidelines of a CII event.

However, the billionaire banker refused to divulge more details on the reasons behind his decision to hold on to the stake.

Recently, there have been media reports that BSE and NSE were interested to buy the stake from Kotak Mahindra Bank.

Chicago Mercantile Exchange was also keen to buy Kotak Bank's stake in 2016 but differences over valuations had stalled talks.

In July 2014, the fourth largest private sector lender had bought shares of MCX from Jignesh Shah-promoted Financial Technologies India Ltd (FTIL) to hold 15 percent stake.

National Spot Exchange Limited scam broke out, and Forward Market Commission (FMC) directed FTIL to reduce its stake in MCX to below 2 percent.

Other prominent shareholder in the company includes ace investor Rakesh Jhunjhunwala, who has a 3.92 percent stake.

Kotak Mahindra Bank’s stake in MCX increases the confidence of other investors in the exchange including mutual funds.

With SEBI clearing the universal exchange policy from October 2018, stock exchanges can offer commodity trading without having to set up a separate exchange for the same. Market experts say MCX would be the most impacted exchange with this move.

Source: moneycontrol.com

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