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Bloomberg
At least three Indian brokerages have petitioned the courts to challenge the settlement of crude oil contracts at negative prices.
Motilal Oswal Financial Services Ltd and PCS Securities Ltd are appealing to the Bombay High Court, which was expected to hear on April 27 their case against the decision by Multi Commodity Exchange of India Ltd. Religare Enterprises Ltd has turned to the Delhi High Court, said Ravichandra Hegde, senior partner at Parinam Law Associates and the lawyer representing the brokerages.
Losses amounted to $57 million, Hegde said, when crude’s unprecedented crash into negative prices caught investors off guard across Asia. If the legal petition is unsuccessful, the securities firms will have to impose costs on their clients, and if they refuse or fail to pay up it can become an obligation on the brokerages themselves.