This Article is From Mar 16, 2016

Financial Tech Completes 13% Stake Sale in DGCX

Financial Tech Completes 13% Stake Sale in DGCX
New Delhi: Financial Technologies on Wednesday said it has exited from Dubai Gold and Commodities Exchange (DGCX) by selling its 13 per cent stake in the bourse to Dubai Multi Commodities Centre (DMCC).

"Financial Technologies (India) Ltd (FTIL) today concluded the transaction relating to sale of its 13 per cent stake in DGCX to Dubai Multi Commodities Centre (DMCC), a Government of Dubai enterprise," FTIL said in a filing to the BSE.

The deal concluded after it got an approval from the Reserve Bank of India (RBI) on March 4.

"With the conclusion of the above transaction, FTIL has completely exited from DGCX," FTIL said.

FTIL and its wholly-owned subsidiary FT Group Investments Pvt Ltd, Mauritius (FTGIPL) had announced in January sale of their 13 per cent and 14.3 per cent stake respectively for $11 million.

FTIL had entered into a share purchase agreement with DMCC for sale of its 13 per cent stake in DGCX for an aggregate consideration of $5,225,000. Separately, FTGIPL also entered into a share purchase agreement with DMCC for sale of its 14.3 per cent stake held in DGCX for $5,775,000.

FTIL has been exiting exchange business after the erstwhile regulator FMC declared FTIL and the promoter unfit to run exchange business following the payment crisis at its subsidiary, NSEL.

Similarly, the Securities and Exchange Board of India (Sebi) had said FTIL was '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.
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