Financial Technologies

Financial Technologies (India) Ltd has informed that the members at the 19th Annual General Meeting (AGM) of the Company held on September 28, 2007, inter alia, have accorded to the following:

1. Adoption of the Audited Balance Sheet as at March 31, 2007 and Profit and Loss Account for the year ended on that date together with the Directors Report and the Auditors Report thereon.

2. Confirmation of the four interim dividend paid for the year 2006-07 totaling 300% (Rs 6/- per share on face value of Rs 2/-) amounting Rs 26,44,30,960/- & declaration of final dividend of Rs 2/- (100%) per equity share on the paid-up Share Capital of the Company as on March 31, 2007 for the financial year 2006-07.

3. Re-appointment of Mr. Ravi K Sheth, as a Director of the Company, liable to retire by rotation.

4. Re-appointment of M/s. Deloitte Haskins & Sells, Chartered Accountants, Mumbai as Auditors of the Company to hold office from the conclusion of this Annual General Meeting until the conclusion of the next Annual General Meeting of the Company, on remuneration, terms & conditions.

5. Revision in remuneration payable to Mr. Jignesh P Shah, Chairman & Managing Director of the Company with effect from April 01, 2007, for the residue unexpired of his current term of his appointment upto January 30, 2007, on terms and conditions.

6. Revision in remuneration payable to Mr. Dewang Neralla, Whole-time Director of the Company with effect from April 01, 2007, for the residue unexpired of his current term of his appointment upto January 30, 2009, on terms and conditions.

7. Payment of commission to Non-Executive Directors of the Company from the Financial Year 2007-08 onwards for a period of five years, on terms and conditions.

8. Increase in the remuneration payable to Mr. Manjay P Shah holding and continuing to hold an office of profit in the Company, as Director — Business Development (Non-Board Member forming part of the Core Senior Team Management Personnel) on terms and conditions.

9. Approves the Registrar of Members, the Index of Members, records relating to
returns of allotment from time to time, copies of Annual Returns prepared under Section 159 of the Act together with copies of certificates and documents required to be annexed thereto under Section 161 of the Act or any one or more of them, be kept at the office of M/s. KARVY Computershare Pvt Ltd, the Registrar and Share transfer Agent of the Company, Chennai.

10. Authority to the Board to re-issue the lapsed stock options of the Company that lapse due to the resignation or for any other reason whatsoever, to other permanent employees of the Company, including the eligible Directors of the Company with an option to exercise by the option holders to subscribe for equity shares, at such price and in such manner, in one or more tranches, and on such other terms and conditions as the Board of Directors / Compensation Committee may deem fit, subject to necessary provisions and approvals.

11. Authority to the Board for enabling the Company to re-issue the lapsed stock options of the Company that lapse due to the resignation or for any other reason whatsoever to other permanent employees of the Company's subsidiary Companies, including the eligible Directors of the subsidiary companies with an option to exercise by the option holders to subscribe for equity shares, at such price and in such manner, in one or more tranches, and on such other terms and conditions as the Compensation Committee may deem fit, subject to necessary provisions and conditions.

Financial Technologies

Financial Technologies India Ltd has informed that at the Committee Meeting of the Board, it has been decided to raise upto US $ 100 Million plus a Green Shoe Option of upto $ 15 Million through issue of Global Depository Receipts (GDRs) to overseas investors.

The GDR procceds will be utilized for, inter alia, global M & A opportunities in exchange as well as technology space and investment in organic & inorganic global domain — centric businesses.

Financial Technologies India

Financial Technologies India Ltd has informed about the following:

- Merrill Lynch and Citigroup acquires 5% stake each in Multi Commodity Exchange of India Ltd (MCX) from Financial Technologies (India) Ltd (Company) and MCX emerges as the 'Exchange of Choice' globally. Company plans to invest proceeds in green field ecosystem ventures such as - National Spot Exchange Ltd (NSEL), National Bulk Handling Corporation Ltd (NBHC) and others towards the development of complete value chain.

MCX, as part of its strategy to evolve into a globally recognized, world class commodity exchange from India, has further expanded its shareholder base by virtue of Company divesting its equity capital in MCX. In addition, the Company has also signed definitive Agreements with Passport India Investment (Mauritius) Ltd and GLG Financials Fund for sale of a 3% and 2% stake, respectively, in MCX. MCX received valuation ranging from US$ 1.0 billion to US$ 1.1 billion for the above transactions. These investments from strategic international partners will provide Indian commodity markets and MCX access to global know how, best practices, domain knowledge and technology — making them more efficient, competitive, transparent and among the most respected institutions globally.

The Company, as a part of its strategy, divests its stake in its ventures to key partners that can help propel the growth of its ventures to the next level. It plans to invest the proceeds from the same in organic and other growth opportunities including green field exchanges and ecosystem infrastructure ventures such as NSEL (National Spot Exchange Ltd) and NBHC (National Bulk Handling Corporation Ltd) among others, in local and global markets.

Financial Technologies India

Financial Technologies India Ltd has informed that the Company has received an approval from the Central Electricity Regulatory Commission (CERC) to set up India's first national level power exchange — Indian Energy Exchange Ltd (IEX) for trading electricity. IEX, promoted by the Company, will be a pan India neutral and transparent electronic demutualized exchange for efficient price discovery in the electricity market. PTC India Ltd has consented to take 26% stake in IEX. Other corporates who have consented to take a stake are Tata Power (TPC), Reliance Energy (REL) Rural Electrification Corporation (REC), Adani Enterprises (AEL) and IDEC in the consortium. The Company will continue to Invite strategic partners to join the power exchange. Taking into account the nascent stage of exchange traded power market in India, the Company has designed a very innovative solution for the power sector by deploying the best fit global technology solution for the Indian market to encourage larger participation by large and small players.

Commenting on this launch, Mr. Dewang Neralla, Co-founder of the Company said, "A pan India neutral and transparent energy exchange is the need of the hour for strengthening of the power sector by providing them efficient short term and long term price signals. IEX is a reflection of Financial Technologies’ vision to create world class market driven economy which empowers the entire supply chain equalizing the smallest and the largest. IEX's endeavor will be to create a platform that can eradicate the gap between buyers and sellers by taking the supply where the demand exists at most efficient equilibrium price."

In India the scope of trading power is huge even with its current power shortage scenario. There is an imbalanced disposition of resources within the country. On the one hand, there is the eastern region, which is rich in coal sources and so a lot of pit head based load plants have been set up there. The north eastern region also holds a lot of hydro power potential, whereas on the other hand, the western and northern regions of the country suffer from a heavy deficit of such power due to their immense industrial and agricultural load. IEX will be the key change agent for distributing power for bridging the gap between demand and supply by uniting all the buyers and sellers on a single platform to trade at a common national price without any risk of counterparty, which will be guaranteed in the Exchange Mechanism.

The need for a power exchange has been felt for quite some time to meet the demand and supply of power on time and to provide a common platform to both buyers and sellers and to assist them in price discovery. IEX promises multi-fold benefits for the Indian electricity supply industry by creating a non-discriminatory marketplace with a pan-India access to all buyers and sellers. IEX will ensure a transparent price discovery mechanism along with providing various other services such as settlement, payment security and technology for trading and risk management. It will enable participants to trade electricity the subsequent day through standard hourly contracts and block contracts that permit them to draw power from the grid at a given hour.

Going forward, IEX has many products ready to meet the requirements of the power sector based on the feedback received from the trade during the last one and a half years. The power exchange will benefit market participants such as the generators, distribution licensees, open access users, trading licensees, industrial consumers, system operators and bankers in many ways.

Having a power exchange will also be advantageous to the regulators because it will act as a single point self-regulatory organization (SRO), supervising its users and ensuring neutral and transparent national level pricing for all.

Currently, short term trading constitutes only 3% of the total energy market as against over 15% globally. Power markets generally operate with power purchase agreements (PPAs) for long term trading and bilateral contracts for the short term. For very short term requirements there is the unscheduled interchange (UI). In future, these markets will be complemented by the exchange, which will have standard contracts, nationwide choice, better price and payment security.

Apart from the known benefits of a power exchange, IEX brings to the table the benefits of a globally benchmarked exchange, owing to the Company in-depth domain expertise and best of breed exchange solutions. With the Company as a promoter, IEX will be able to provide services at significantly lower capital expenditure, operating expenditure and with globally benchmarked speed of execution.

Benefits IEX will bring to the Indian electricity market:

- Trade transparency:

All prices and quantities will be displayed on IEX trading terminals across India, and all trades will be anonymous and guaranteed by IEX. This will encourage participants to use the exchange mechanism, which will be neutral and transparent.

- Cost-efficiency:

Participants will have the flexibility to trade in the desired quantity at the desired price and desired time, without additional overheads. Cost of transactions will be lower, whereas safety and equality will be much higher.

- Price-risk management:

Trades on IEX will provide long-term and short price signals to enable participants to make suitable sell/buy decisions.

- Unlocking value:

IEX will unlock a deep and liquid market that will promote competition among stakeholders and lead to better capacity utilisation and smoothening of prices for consumers. It will attract additional capacity by providing a readymade market to interested parties.