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63 Moons was earlier known as Financial Technologies (India) Ltd (FTIL) (Mint)
63 Moons was earlier known as Financial Technologies (India) Ltd (FTIL) (Mint)

63 Moons says SAT reserves judgement on its challenge to Sebi order

  • The SEBI, on December 3, 2020 has passed an order rejecting the approval to 63moons for providing STP Gate Services on the basis of 'Fit &Proper' order that was passed by the Forward Markets Commission (FMC) seven years ago

63 Moons Technologies on Monday said Securities Appellate Tribunal (SAT) has reserved the judgement on the firm's challenge to Sebi's order which disallowed it from providing Straight Through Processing gate services.

The Securities Appellate Tribunal(SAT) on Monday heard the 63 moons technologies limited' challenge to Securities and Exchange Board of India (SEBI) order disallowing the Company fromproviding STP Gate Services and has reserved the judgment. While passing the order theTribunal has kept the SEBI Order in abeyance.

This in effect means that till the passing of the final decision bythe Hon'ble Tribunal,the SEBI Order will remain ineffective. We are hopeful of justicebeing delivered.

The SEBI, on December 3, 2020 has passed an order rejecting the approval to 63moons for providing STP Gate Services on the basis of 'Fit &Proper' order that was passed by the Forward Markets Commission (FMC) seven years ago.

In December 2020, the Securities and Exchange Board of India (Sebi) said 63 Moons has been offering STP (Straight Through Processing) services without its approval and allowed the company to provide such services for three more months to clients in order to avoid any possible disruptions for securities market participants.

Generally, financial firms use STP to pass information electronically in order to optimise the speed at which they process transactions. This eliminates the need for a hands-on re-entry of data that has already been completed at the source.

The watchdog's directions were part of an order wherein it rejected 63 Moons' application seeking renewal of approval to provide STP services on the basis of ''fit and proper'' criteria.

Earlier known as Financial Technologies (India) Ltd (FTIL), 63 Moons, on April 25, 2016 sought approval to act as a STP service provider for the period from June 30, 2016 to June 29, 2019.

As per the order passed by Sebi in December 2020, Sebi Executive Director Anand R Baiwar rejected the application for renewal of approval relating to the period from April 17, 2018 to June 29, 2019. The rejection is on the basis of ''fit and proper'' criteria.

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