HC asks MCX-SX, Sebi to resolve issues by 30 Sept

HC asks MCX-SX, Sebi to resolve issues by 30 Sept

Mumbai: The Bombay High Court on Friday asked market regulator Sebi and MCX Stock Exchange (MCX-SX) to resolve their issues over equity trading through discussions and come up with an amicable solution by 30 September.

MCX-SX had last September moved the HC challenging a Sebi order rejecting its application to launch equity trading.

Justice D Y Chandrachud advised the warring parties to come back to the court on 30 September with a workable solution through undertaking and assurances.

The judge also advised Sebi to consider withdrawing the show-cause notice it had slapped on MCX-SX as most of the issues in the order have been resolved.

Last year Sebi denied permission to MCX-SX to begin equity trading as it was apprehensive of the shareholding pattern in the private exchange promoted by Jignesh Shah-led Financial Technologies.

MCX spokesperson declined to comment on Friday’s HC direction, saying the issue is still part of the court proceedings.

The HC also told Sebi to give MCX-SX a fresh chance with an open mind, saying for “small reasons, institutions should not be closed down as markets needs competition".

Financial Technologies-promoted MCX-SX is currently the number one exchange in the currency derivatives market. The other two players are the National Stock Exchange (NSE) and United Stock Exchange (USE).

MCX-SX started operations in the currency derivatives in 2008 and Sebi on Wednesday gave a conditional one year extension to the privately-held exchange for trading in currency futures segment.