The Multi Commodity Exchange of India Limited (MCX) on October 17, 2024, issued a circular regarding the mandatory Reporting of National Company Law Tribunal (NCLT) proceedings by Members.
It has been observed that certain clients have approached the National Company Law Tribunal (NCLT) for reliefs instead of filing their claim as per the Investor Grievance Redressal Mechanism provided by Securities and Exchange Board of India (SEBI) and the Exchange. This can result in the significant depletion of the Member’s assets, potentially leaving other clients without the ability to recover their dues.
In joint consultation with the Industry Standard Forum (ISF), the Exchanges has decided that the concerned member shall report cases admitted in NCLT against such member entity or its promoters to the Exchange within one week of the admission of such case.
[Circular No. MCX/ISD/697/2024]
