Comments
The Bombay High Court on Tuesday directed Metropolitan Stock Exchange to deposit an additional ₹21 crore in eight weeks.
Warrants worth ₹41 cr The court was hearing the case filed by MCX against the stock exchange for extinguishing its warrants worth ₹41 crore as it was not converted into equity within the three-year validity period for warrants fixed by the regulator.
The stock exchange cancelled the warrants in June and transferred the amount to its net worth. Earlier, the stock exchange deposited ₹20 crore as ordered by the court.
Market experts feel that the court ruling is an indication that the final ruling may go against the stock exchange which is already facing a cash crunch and struggling to keep its net worth intact.
The exchange’s net worth will fall to ₹103 crore from the current level of ₹124 crore after providing for the fresh deposit as directed by the court. The exchange would be better of to go for an out-of-court settlement with MCX, which also holds 3.42 per cent equity stake in the stock exchange, said an analyst tracking the developments at the exchange.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.