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.