Jignesh Shah-promoted Multi Commodity Exchange defers preferential allotment

PTI Posted online: Thursday, Apr 03, 2014 at 0000 hrs
Mumbai : Jignesh Shah-promoted Multi Commodity Exchange (MCX) today decided to defer its controversial preferential allotment issue.

A statement by MCX here did not give any reason for the decision.

Last week, the parent company Financial Technologies threatened to take legal action against MCX over the preferential allotment.

FTIL, which holds 26 percent shares in MCX, had said it had not received any communication and the board of FTIL will take necessary legal action in the interest of its 65,000 plus shareholders.

FTIL had said until the final decision by the High Court on FMC's declaration regarding FTIL's eligibility comes, FTIL cannot be legally deprived of its rights.

Last month, MCX's board asked promoters to bring down its holding in the commodities exchange to 2 percent in keeping with an order by the commodity markets regulator Forward Markets Commission (FMC).

On December 17 last year, FMC had issued an order declaring FTIL and its chief Jignesh Shah unfit to run any exchange, including the MCX, following a Rs 5,600-crore payment crisis at group company National Spot Exchange.

This was followed by Sebi issuing a similar order last month banning it from running any exchange in the country.