Mumbai : In an interim order, the Bombay High Court has restrained Metropolitan Stock Exchange of India (MSEI) from cancelling or extinguishing warrants worth Rs 41.60 crore held by the commodity bourse MCX, reports PTI.
The court also restrained MSEI, formerly known as MCX Stock Exchange, from appropriating or dealing with the deposits of MCX placed with it, until it disposes the case filed by the commodity bourse against the stock exchange, Justice Gautam Patel ruled in an order dated July 9. Transferable warrants entitle a holder to convert them into equity shares subject to the condition that no single holder of the warrants exceeds the five per cent shareholding cap clamped by the markets watchdog Sebi in a stock exchange.
Sebi had given MCX, which is a shareholder in the MSEI, three years until June 19, 2015 to dispose of warrants worth Rs 61.71 crore, worth Re 1 face value, which gave it a right to equity in MSEI well over the stipulated 5% limit. Both the exchanges were originally promoted by Jignesh Shah-led Financial Technologies Group, which went into a regulatory quagmire after the shutting down of another group company NSEL, a commodities spot exchange which was asked to shut down on July 30, 2013 following a Rs 5,600-crore payment scam.
