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The Forward Markets Commission has sought more clarity from MCX on the Financial Techologies-Kotak Bank deal before it could allow the exchange launch new contracts for the next calendar year.
Earlier, FMC had cleared the deal, but it has sought more clarity to lift the ban on the exchange to launch new contracts.
Share purchase agreement
In a response to MCX letter seeking permission to launch new contracts, the market regulator had said that the share purchase agreement signed between Financial Technologies and Kotak Mahindra Bank appears to be conditional. The execution of the agreement depends on revision of technology agreement between MCX and FTIL.
The deal lacks in clarity with regard to the exact date of its execution and consequently does not inspire adequate confidence and assurance with regard to the proposed acquisition of 15 per stake in MCX, FMC said.
“Therefore the exchange should clarify as to exactly by what date the disinvestment of remaining 15 per cent shall be completed,” it said.
The regulator has also impressed upon the implementation of Oversight Committee and Pricewaterhouse Copper findings before permission is granted for launching new contract.
MCX shares were trading lower by one per cent at Rs 809.
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