Diamond trader buys stake in MSEI; MCX raises holding to 40 crore equities

A diamond trader is among those learnt to have purchased convertible warrants in Metropolitan Stock Exchange of India(MSEI) from commodity exchange MCX recently. The warrants were purchased at Rs 1.1 each, convertible into an equity share of Rs 1. MCX sold 18.25 crore warrants it holds in MSEI to comply with Sebi norms, which require it to cut its direct and indirect holding in the stock exchange to 5 per cent.

Post the sale, MCX holds 40 crore equity share warrants in MSEI, apart from 4.14 per cent of its equity capital. Assuming conversion, its stake well exceeds the 5 per cent individual investor cap in a stock bourse. An e-mail query on the recent warrant sale went unanswered. The bourse has invited bids for the remaining 40 crore equity share warrants by the cut-off date of June 16.