Bombay High Court restrains MSEI from cancelling MCX’s warrants

MUMBAI: The Bombay High Court (HC) has restrained Metropolitan Stock Exchange of India (MSEI) from cancelling, extinguishing or appropriating warrants worth Rs 41.6 crore that commodity bourse MCX holds in it until it disposes of a suit filed by the MCX against MSEI in the matter. The transferable warrants entitle a holder to convert them into equity shares subject to no single holder exceeding Sebi’s 5% shareholding cap in a stock exchange.

Sebi gave MCX, a shareholder in MSEI, three years through June 19, 2015 to dispose of 61.71 crore warrants, worth Rs 1 each, which gave it a right to equity in MSEI well over the stipulated 5% limit. MCX said that on May 25, it received offers from various investors to buy significant portions of warrants held by it in MSEI at a premium of 50 paise over the one-rupee face value.