FinMin says not to intervene in Sebi, MCX-SX row

Refusing to intervene in the ongoing tussle between market regulator the Securities and Exchang Board of India (Sebi) and MCX Stock Exchange (MCX-SX), the Finance Ministry has said the aggrieved party can approach either the Securities Appellate Tribunal (SAT) or the Supreme Court.

The Sebi had recently rejected the application of MCX-SX to start trading in equities and equity-linked derivatives alleging violation of shareholding norms and questioning the integrity of the promoters.

When contacted, Finance Ministry officials said there was no reason for the ministry to intervene suo-moto on the issue which is sub-judice.

The aggrieved party MCX-SX, they said, could approach either the SAT or the Supreme Court against Sebi's decision.

MCX-SX, promoted by India's largest commodity bourse MCX and another group company FTIL, currently offers trading in currency futures only.

In April, MCX-SX had applied to deal in interest rate derivatives, equities, futures and options on equities and wholesale debt and other segments where BSE and NSE have a presence.

However, the Sebi in its order said it was "not satisfied that it would be in the interest of trade and also in public interest to allow the application".

When asked whether the Finance Ministry has prepared a note on the issue, the official replied in the negative saying it does not interfere in such matters.