MCX Stock Exchange: Clarification On Speculative Reports And Market Rumours

MCX-SX would like to provide clarification on certain media reports and market rumors.

The board meeting which is scheduled to be held today is not an “emergency meeting” but is a regular meeting and planned a month in advance (on 15^th Feb) in order to block calendars of all board members.

It would be speculative to pre-empt resignation of all PIDs and we would request to refrain from rumors and await the announcement post the board meeting. As in the case of other companies, new members would be nominated by shareholders or independent directors would be appointed by the regulator if the need arises.

The exchange has cleared stringent audits by the regulator before granting the renewal in October 2013. We were also granted permission to offer trading in IRF segment on our platform in January 2014 indicating the confidence of the regulator on the exchange and its systems & processes.

The rights issue is on track and we have received a confirmation from several shareholders for participation. The outcome of the rights issue will be made public upon its completion by end of this month. Meanwhile, we have also received expression of interest from new investors and the exchange could exercise a preferential allotment post the rights issue if it is not entirely subscribed.

The exchange has successfully ring-fenced itself from the crisis and is run by a professional management team. FTIL & MCX have been shifted from the category of “Promoter shareholder” to “Public Shareholder”. 

The board has been successful in rationalizing costs in a significant manner over the last few months. We are confident that the policy reforms for Currency Derivative segment will give the desired boost to the volumes resulting in a turnaround in the balance sheet.

The exchange has also cemented its No. 2 position in the newly launched IRF segment.

We request members of the exchange, the trading community and public at large to refrain from spreading speculative rumors and thank you for the support extended to the exchange in these challenging times.