MUMBAI : Three brokerage firms -- Motilal Oswal Financial Services Ltd, Religare Securities and PCS Securities Ltd -- on Wednesday moved Bombay High Court against Multi Commodity Exchange’s (MCX) decision to arrive at a settlement price of minus ₹2,884 per barrel for crude oil contracts that expired on Monday.
In the petition the brokerages claimed that neither MCX nor any other commodity exchange in India "has any provision to trade commodities / stock by assigning it a negative value to it".
The firms are seeking a stay on the settlement of the contract till final orders. A copy of the petition has been reviewed by Mint. "Crude Oil futures contracts are settled in cash on the exchange and there is no delivery-based mechanism for these