The court stated that during the proceedings before Sebi and the High Court, undertakings have been filed by the MCX promoters to the effect that the provisions of Mimps regulations, including the ceiling on the holding of shares, would be complied with.
The applicant is not fully compliant with the Mimps regulations as substitution of shares by warrants is an attempt to work around the requirements of the rules.
" are plants that seem neither to live nor die.
MIMPS regulations have set a ceiling of five per cent holding for each of the shareholders in a recognised stock exchange, except for those institutions recognised by the regulator as ' Fit and Proper person', for which only a few institutions and banks qualify.
Such buyback arrangements could lead to violation of MIMPS norms.
Sebi renewed recognition to the exchange for one year up to September 2010, on the condition that the exchange should comply with the regulations -- Manner of Increasing and Maintaining Public Shareholding in Recognised Stock Exchanges ( MIMPS