Don’t miss the latest developments in business and finance.

FTIL moves HC against MCX's voting-rights freeze

Says MCX wasn't empowered to make decisions on its voting rights

Image
BS Reporter Mumbai
Last Updated : Feb 10 2014 | 10:13 PM IST
Financial Technologies (FTIL) is likely to approach the Bombay High Court again on Monday against the decision of Multi Commodity Exchange (MCX) board.

An FTIL official confirmed the move. “Since the case is already filed on a similar issue, we will move the Bombay High Court to make a mention of the latest MCX board decision,” said the official.


FTIL said the MCX board wasn’t empowered to freeze its promoter/anchor investor’s voting rights in excess of 2% and ask the promoter to cut its stake from 26% to less than 2%.

On Friday, the MCX board had announced these decisions, following a Forward Markets Commission (FMC) order that said FTIL wasn’t “fit and proper” to run the exchange.


Saying mismanagement by FTIL had led to a Rs 5,600-crore payment crisis in subsidiary National Spot Exchange Ltd, the FMC had said FTIL wasn’t “fit and proper” to hold more than 2% in MCX. FTIL has challenged FMC’s order in the Bombay High Court.

The MCX board also decided to order FTIL to open a joint escrow account and depository participants to transfer FTIL’s over 2% stake in that account.

Also Read

First Published: Feb 10 2014 | 10:13 PM IST

Next Story