CCI clears Kotak 15 pc stake buy in MCX

September 15, 2014 21:19

Kotak Mahindra Bank's proposed Rs 459 crore deal to acquire 15 per cent stake in commodity bourse MCX today got the approval of fair trade regulator CCI, making the financial sector conglomerate a major player in exchange business.

According to the Competition Commission of India (CCI) the proposed deal "is not likely to have an appreciable adverse effect on competition in India".

On July 20, this year, Jignesh Shah-led Financial Technologies India Ltd (FTIL) had announced that it has signed an agreement to sell 15 per cent stake in MCX to Kotak Mahindra Bank for Rs 459 crore.

As mandatory, Kotak had approached CCI for its approval on August 1, 2014.

The Commission, in its order released today, observed that Kotak has 40 per cent equity interest in Ace Derivatives and Commodity Exchange (Ace) a national multi-commodity exchange.

This stake would have to further brought down to 15 per cent by the year 2019 in accordance with the Forward Market Commission (FMC) revised norms, CCI noted.

Besides, the fair trade watchdog also said "that neither Kotak nor any of its subsidiaries, affiliates or joint venture, either directly or indirectly, has any investment in any other commodity exchanges in India".

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