FTIL's Sebi hearing adjourned till January 13

Market regulator to hear FTIL after Bombay HC hears its appeal against FMC order

Financial Technologies India’s (FTIL) hearing before the Securities and Exchange Board of India (Sebi) has been adjourned till January 13, sources have said.

The market regulator is likely to hear FTIL, founder of currency and stock exchange MCX-SX, after the high court (HC) here does so against an order passed by the Forward Markets Commission (FMC), declaring it not ‘fit and proper’ to run or own a substantial stake in Multi Commodity Exchange (MCX).

FTIL’s appeal against the commodities market regulator is likely to be heard by the HC on Wednesday.

“Sebi has agreed to postpone FTIL’s hearing to next week, after the high court hears the appeal against FMC’s order,” said a person with the direct knowledge of the development.

J Sagar Associates is representing FTIL before Sebi.

FTIL’s hearing before Sebi is with regard to a showcause notice (SCN) issued by the market regulator, questioning its ‘fit & proper’ status to run MCX-SX, given its involvement in the Rs 5,500-crore  payment crisis at the National Spot Exchange Limited.

In the notice issued on December 20, Sebi had asked FTIL to show cause as to why it should not be directed to divest its equity holdings and warrants in MCX-SX.

FTIL owns 4.99% stake in MCX-SX and additional warrants, along with MCX, amounting to nearly 69% stake, post conversion.

FTIL will have to reduce its shareholding in the stock exchange substantially if Sebi declares it not 'fit and proper'.