The battle between IL&FS and La-Fin over the buyback agreement involving MCX-SX shares on Monday took a decisive turn with the parties now considering arbitration, reports CNBC-TV18's Ashmit Kumar.
La-Fin proposed that the two parties concerned, IL&FS and La-Fin, could perhaps attempt to settle the matter by arbitration. The buyback agreement between the two parties does not have an arbitration clause so in that context, this does appear to be a significant development. IL&FS on its part welcomes this move. In fact, they even said that prima facie, it does appear to be good idea. However, they have sought some time to file their reply. In fact, they will have time till next Monday, which is July 15. La-Fin will then reply. The heart of the matter is the buyback agreement between the two parties, IL&FS and La-Fin. La-Fin has refused to honour the agreement in terms of buying back the shares, primarily on account of MIMPS regulations which they argue prohibits the promoters of MCX-SX to increase their shareholding on the 5 percent levels. Meanwhile, MCX-SX clarifies: "We would like to elucidate that MCX-SX is not a party in the proceedings between La-Fin and IL&FS. The said article is factually incorrect and has portrayed MCX-SX as a party to the proceedings and it has played an active part therein which is misleading the stakeholders of MCX-SX."Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
