MCX SX promoters will divest 45% stake in the stock exchange to nine global entities including a consortium of three global stock exchanges. London Stock Exchange, NYSE-Euronext, General Atlantic Llc, Abu Dhabi Investment Authority, Fidelity's TPG Axon Capital Management Plc and Temasek Holdings Pte Ltd are some of the the likely buyers.

The deal values the exchange at $1.08 bn i.e. same valuation at which it sold shares in 2009. At this price, current deal will fetch the promoters $486 million. MCX SX has already divested 30% in 2009 to Union Bank of India, Bank of India and IFCI. With this 45% divestment, the promoters stake will come down to 25%.

In December 2009, a Mauritius based entity, Tara India Holdings was also rumoured to acquire 1.66% in MCX SX for $16.15 mn.

As per SEBI rules, no single entity can hold more than 5% in a stock exchnage except other stock exchanges, depositories, banking companies, insurance companies and public financial institutions. They can hold upto 15%.

Thus, Multi Commodity Exchange of India Ltd (MCX) and Financial Technologies (FTIL), the promoters of MCX SX have been asked by SEBI to bring down their holding to 5% each. In November, SEBI granted a year's extension to promoters uptill September 2010, to divest their holdings. MCX SX's application for equity trading is pending with SEBI for past one and half year.

SEBI has also put a cap on overseas investors stake in stock exchange's at 49%. This implies additional headroom of only 4% stake sale to overseas investors after this deal.

Deutsche Bank AG, Nomura Financial Advisory and Securities Ltd and Antique Capital Markets Pvt Ltd were appointed as investment bankers to scout for buyers. Deutsche left the mandate in 2009.

The MCX-FTIL combine runs 10 exchanges across various asset classes such as bullion, crude, currency and power, in India and overseas.

MCX-SX started trading in currency futures on 7 October and later applied to SEBI for equities trading. It also plans to start trading in interest rate futures. The average daily turnover of currency futures on the exchnage has increased to $3.1 bn for January 2010.