The Competition Commission of India (CCI) has approved Kotak Mahindra Bank’s proposed Rs 459 crore deal to acquire 15% stake in commodity bourse MCX. CCI said the proposed deal “is not likely to have an appreciable adverse effect on competition in India”. Financial Technologies India had signed an agreement with the bank in July to sell 15% of the 20% stake it held in the exchange for Rs 459 crore. The bank had approached CCI for its mandatory approval. As per the details in the CCI order, post combination Kotak would hold 15% non-controlling equity interest in MCX and as per the norms by FMC, the bank would not have any contractual right to appoint directors to the board of MCX, in proportion to its shareholding in the exchange. FTIL originally held 26% stake in MCX. The Jignesh Shah-led company is divesting stake in MCX after FMC had declared the company unfit to run any exchange in the wake of Rs 5,600 crore payment crisis at group company National Spot Exchange. The regulator had asked FTIL to reduce its stake in MCX to 2% from 26%. Before the Kotak deal, FTIL had sold 6% stake in MCX in two rounds for about Rs 220 crore, bringing down its shareholding to 20%.
