Jignesh Shah-led FTIL concludes Indian Energy Exchange stake sale

Financial Technologies on Friday said it has concluded sale of its remaining 5% stake in Indian Energy Exchange (IEX).

"The company has concluded the sale of balance 5% equity stake in IEX on a fully diluted basis... With the conclusion of the transaction, the company has completed sale of its entire 25.64% stake in IEX," Financial Technologies said in a regulatory filing.

During the transaction, the company sold 3.02% stake to Siguler GUFF NJDM Investment Holdings, 1.61% to SG BRIC III Trading LLC and 0.37% to Madison India Opportunities III.

The Jignesh Shah-led Financial Technologies India Ltd (FTIL) had nearly 26% stake in the largest power trading exchange, IEX, but started divesting in the bourse following an order by power regulator Central Electricity Regulatory Commission (CERC) to sell out completely.

The move followed the erstwhile regulator Forward Markets Commission (FMC) declaring FTIL and the promoter unfit to run exchange business following the payment crisis at its subsidiary, National Spot Exchange Ltd (NSEL).

Similarly, the Securities and Exchange Board of India (Sebi) had said FTIL is 'not fit and proper' to own stakes in any stock exchange and directed it to divest existing holdings in MCX-SX and four other entities. 

At 1545 hours, shares of Financial Technologies were trading up 1.95% or Rs 1.95 up, at Rs 102.05 per piece on BSE on Friday.