LSE eying for 5% stake in MCX-SX

London Stock Exchange (LSE) is reportedly to be in talks with Financial Technologies India (FTIL) to buy a stake in its stock exchange arm MCX-SX.

LSE, the world’s third largest exchange in terms of value of shares traded, is expected to buy 5% stake in the FTIL arm. As per Securities and Exchange Board of India’s (SEBI) norms, overseas players, including stock exchanges, can invest up to 5% in Indian stock exchanges.

The FTIL group, desirous for starting equity trading, will have to start divesting its stake by the end of the first year of operations. MCX has been in talks with several global investors, including LSE. Licensing conditions necessitate divesting the stake by the end of first year of operations.