The high court here rapped the MCX Stock Exchange over its conduct (MCX-SX) with regard to non-disclosure of share buyback arrangements of its promoters with other shareholders. It was the second day of the hearing in the case between MCX-SX and the Securities and Exchange Board of India (Sebi), where the former has appealed against denial of permission to operate as a full-scale stock exchange. Denying all Sebi charges, MCX-SX had argued the scheme of capital reduction which it had undertaken had an overriding effect over all previous agreements, including buyback agreements.
Financial Technologies and Multi Commodity Exchange (MCX), the main promoters, had sold shares to several institutions, after which MCX-SX resorted to a scheme of capital reduction to bring down holding of its promoters to five per cent, to comply with the Manner of Increasing and Maintaining Minimum Public Shareholding (MIMPS) norms.
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