HC defers plea against MCX for negative price settlement

Mumbai: In a minor setback to brokers opposing the negative price settlement of MCX April crude contract, the Bombay High Court, while declining interim relief, adjourned the hearing of the petition by Motilal Oswal Financial Services and PCS Securities against the exchange, its clearing corporation MCXCCL and market regulator Sebi to the first week of June.

“The petitioners (long side brokers) argued for a stay on the payout to corresponding brokers on the short side,” said Janak Dwarkadas, senior counsel for MCXCCL. “Alternatively, they sought stoppage of payout from the corresponding brokers to the counterparties (clients) if the payout had been completed. They also sought the names of the counterparties, which we opposed. No stay was granted and the matter was adjourned to the first week of June as the court felt the matter was not one requiring urgent hearing with the payout having been completed.”

The courts are prioritising cases on the basis of urgency amid severe constraints posed by the Covid-19 outbreak. Somasekhar Sundaresan, representing the petitioners, along with senior counsel Gaurav Joshi, confirmed the case adjournment.