Shares of Financial Technologies (FTIL) today soared by 5.75%, as the Supreme Court asked the market regulator Sebi to reconsider FTIL-promoted MCX-SX's application for a full-fledged stock exchange.
The apex court today asked the Securities and Exchange Board of India (Sebi) to consider within three months the application of MCX-SX seeking permission to launch an equity trading platform, which has been previously rejected by the capital market regulator.
The shares of FTIL witnessed robust buying interest from investors soon after the court decision and settled for the day with a gain of 5.75% at Rs 747.10. Prior to the court decision, the stock was trading nearly flat for most part of the trading session today.
Shares of Multi Commodity Exchange of India (MCX), the FTIL-promoted commodity bourse, also settled 0.9% higher at Rs 1268.40 on the BSE in an overall weak market.
Commenting on the development, an MCX-SX spokesperson said: "We always had full faith in our regulatory and judicial institutions and systems.
"We remain committed to the growth and development of Indian capital market which has a significant role to play in the overall development of the economy," the spokesperson said in a statement.
Sebi had approached Supreme Court after the Bombay High Court set aside a Sebi order rejecting permission to MCX-SX.
The apex court passed the order on the basis of a consensus reached between Sebi and MCX-SX vis-a-vis amendment to the MIMPS (manner of increasing and maintaining public shareholding in recognised stock exchanges) rules which the stock exchange also agreed to adhere to.
Sebi's counsel told the bench that regulator was willing to amend the rules within three months and Salve assured the court that the company was willing to abide by the proposed amended rules upon which the court passed the order.
Earlier the Bombay High Court had set aside the Sebi order rejecting permission to MCX-SX to launch an equity trading platform, asking the regulator to reconsider afresh the bourse's application within a month.
The Sebi had rejected MCX-SX' application on grounds, including violation of the MIMPS rules which mandates promoters to hold only 5% stake.
