Financial Technologies (India) Limited (FTIL) has threatened the Multi-Commodity Exchange (MCX) that it could tale a legal action against the latter's move of capping its voting rights at 2 per cent.

Last Friday, the board of directors of MCX capped FTIL's voting rights at 2 per cent with immediate effect, declaring that any holding of FTIL in excess of 2 per cent would not be considered while voting on a resolution. At present, FTIL owns 26 per cent stake in MCX.

MCX took the decision in order to comply with the order of the Forward Markets Commission (FMC) that directed the exchange to make sure that FTIL decreases its stake from 26 per cent to 2 per cent.

But, FTIL criticized the move, arguing that the FMC order was sub judice before the Bombay High Court, and that the board of any listed company didn't have power to issue directions similar to those contained in letter from MCX. It also argued that directing it to open an escrow account was untenable in law.

Opposing the move on Saturday, FTIL added, "The MCX board should be aware of its own duties and legal obligations and any action that is inconsistent with law will meet with an appropriate legal response to protect the interests of its shareholders."

The FMC had declared that FTIL was not "fit and proper" to hold more than 2 per cent stake in the exchange, given its mismanagement had led to a Rs 5,600-crore payment crisis in subsidiary National Spot Exchange Ltd.