The Bombay High Court today set aside market regulator Securities and Exchange Board of India's (Sebi) order against MCX-SX. The move could pave a way for a new equity exchange has Sebi had earlier denied MCX-SX, which currently operates in the currency segment, permission to trade equities.
The Bombay HC dismissed most arguments put forth by the regulator, including critical ones such as interpretation of rules regarding persons-acting-in-concerts, buy-backs and shareholding norms.
The court has given Sebi till April 13 to consider the application on fresh grounds.
"The Sebi was, is, and will always remain a respected regulator. The MCX-SX stance was not against regulatory institution, but was for principles. We stand vindicated and always have full faith in our judiciary. We remain committed to growth and development of the country's financial markets," MCX-SX spokesperson told PTI.
In 2010, MCX had moved Bombay HC asking directions to force Sebi to respond to its application to trade equities since it had not heard anything from the regulator even after several months.
The court then directed Sebi to decide on the issue. Post this in September 2010, Sebi whole-time member Abraham had passed an order rejecting the exchanges application citing irregularities in divesting stake and dishonesty in disclosures.
MCX had challenged the application in the Bombay HC.
