The Multi Commodity Exchange has filed its draft red herring prospectus with the Securities and Exchange Board of India for the company's public offer. It would be an offer for sale by promoters through a book-building process.
According to MCX Managing Director and CEO Lamon Rutten, the issue would be launched as soon as the regulator gives clearance.
Financial Technologies is the main promoter of MCX with 31 per cent stake. State Bank of India is another major shareholder. Mr. Lamon Rutten said that “MCX will be following in the footsteps of the key international exchanges, but in the process, it will be creating a new benchmark for India's exchange industry”.
Since exchanges have a cap on shareholding percentage and are widely held, listing is of paramount importance for enhanced shareholder scrutiny, accountability of management and adherence to highest level of corporate governance on a par with the best exchanges in the world, Mr. Lamon Rutten said.
On the functioning of MCX, he said efforts would be made to introduce greater transparency, including appointing an Ombudsman, and working with the regulator to define how the principles of Right To Information could be applied to the industry. He said the listing would ensure highest level of shareholder and public scrutiny, corporate governance and transparent trade practices.
He said MCX had decided to have an Exchange Ombudsman for the first time in India subject to necessary approval. The former judge of Bombay High Court, Justice Kamdar, had kindly agreed to be the Exchange Ombudsman. This was a pioneering step in the exchange industry, he said.