Jurisdiction - India
India – CCI Approves Kotak’s Acquisition In MCX.

13 October, 2014


On September 4, 2014, CCI approved the acquisition of 15% of the equity share capital of Multi Commodity Exchange of India Ltd. (‘MCX’) by Kotak Mahindra Bank Ltd. (‘Kotak’). Kotak purchased this 15% shareholding in MCX from Financial Technologies Ltd. (‘FTIL’) pursuant to a share purchase agreement.

CCI noted that (i) Kotak would only have a non-controlling stake in MCX, (ii) as per the Forward Market Commission (‘FMC’) norms, Kotak’s stake in the Ace Derivatives and Commodity Exchange Limited (‘ACE’) has to be reduced to 15 percent from the existing 40%, (iii) amongst the overlapping commodities on MCX and ACE, for some the post-combination market shares were insignificant, for some commodities the increments in market shares due to the combination were negligible and commodities with high degree of overlaps (cotton bales and crude palm oil) were only around one percent of the total market volumes traded in the commodity exchanges, (iv) specifications of the derivative contracts of the MCX and ACE have certain differences so as to cater to the needs of different market participants, and (v) Kotak has no, direct or indirect, investment in any other commodity exchange, besides MCX and ACE.

Accordingly, CCI approved the proposed acquisition observing that it was not likely to cause an appreciable adverse effect on competition in India.




For further information, please contact:


Zia Mody, AZB & Partners
[email protected]


Abhijit Joshi, AZB & Partners 
[email protected]

Shuva Mandal, AZB & Partners 
[email protected]


Samir Gandhi, AZB & Partners
[email protected]

Percy Billimoria, AZB & Partners 
[email protected]


Aditya Bhat, AZB & Partners 
[email protected]

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