Shares of Financial Technologies gained 7 per cent to ₹217, with the company inching closer to signing a technology agreement with the MCX. Shares of MCX also rose two per cent to ₹787 on Friday.
Pact shortly With the board of both MCX and FTIL approving the changes to the existing technology service contract on Thursday, a comprehensive agreement is expected to be signed in a day or two, and new contracts would be launched before September-end, said an official at the MCX.
The Forward Markets Commission, the commodity market regulator, which banned MCX from launching new contracts for the next calendar year, has given a conditional approval to float contracts till March, if it finalises the technology agreement.
Launch of contracts is very crucial, as it allows investors to roll over their positions. MCX has only two contracts each for trade in its most liquid gold and silver, while in copper it is left with only one contract.
Deal with Kotak Bank FTIL expects to execute the ₹459-crore deal with Kotak Mahindra Bank to sell its residual 15 per cent stake in MCX by the month-end.
MCX will be allowed to launch contracts for the full year once FTIL completes the stake sale with Kotak Bank.
The board of directors of MCX approved the Master Amendment to Principal Agreements entered into between MCX and FTIL, for availing technology support and managed services on certain terms and conditions, said MCX.
Pursuant to this agreement, MCX will continue to avail technology support and managed services from FTIL, the statement added.
Kotak Bank has made signing of renegotiated technology agreement with FTIL as a major clause for execution of the share purchase agreement.
Last year, FMC had barred FTIL from holding stakes in commodity exchanges after its group company, National Spot Exchange, failed to settle trades worth ₹5,600 crore entered on the trading platform.