)
Financial Technologies India Ltd (FTIL) has moved the Securities Appellate Tribunal (SAT) against a Securities and Exchange Board of India (Sebi) directive barring it from holding stake in key market institutions such as stock exchanges and clearing corporations.
On March 19, Sebi had passed an order against the Jignesh Shah-led FTIL, deeming it not ‘fit and proper’ to hold stake in key market institutions. Sources said FTIL had filed an appeal against the order before SAT last week.
In its order, Sebi had directed FTIL to divest its entire stake in all market infrastructure institutions within 90 days. Sebi’s order followed the Forward Markets Commission (FMC)’s December 17 order that deemed FTIL not ‘fit and proper’ to hold more than two per sent stake in any regulated commodity exchange. The FMC order came in the wake of a Rs 5,600-crore payment crisis at National Spot Exchange Ltd (NSEL), FTIL’s subsidiary.
| SPOT ANALYSIS |
FTIL needs to divest its holdings in the following five market infrastructure institutions
|
FTIL had moved SAT on the grounds that the order passed by the FMC didn’t have a bearing on the securities market, said sources privy to the matter. In its submission before SAT, the company said Sebi had based the order not on specifics, but on the assumption the FMC order had an impact on the securities market.
FTIL and Sebi spokespersons declined to comment on the matter.
| THE STORY SO FAR |
|
