MCX and MSEI Ink Pact to Settle Dispute

Commodity exchange MCX has entered into an agreement with stock bourse MSEI to settle their dispute over warrant cancellation out of court.

As per the regulatory norms, a commodity exchange cannot hold more than 15 percent in any stock exchange. MCX was holding 41.59 crore warrants of face value of Rs one each in Metropolitan Stock Exchange of India (MSEI).

The case was before Bombay High Court.

As per the agreement, MSEI will allot 26.51 crore equity shares in lieu of same number of warrants.

MSEI will cancel the remaining 15.07 crore warrants held by MCX.

On satisfaction of the consent terms, Rs 15.07 crore towards refund of cancellable warrants will be released in favour of MCX.

The agreement would executed subject to necessary approvals including from Sebi.