Resolve issues amicably by Sept 30: HC asks MCX-SX, Sebi

The Bombay High Court today asked market regulator the Securities and Exchange Board of India (Sebi) and MCX Stock Exchange (MCX-SX) to resolve differences over the equity trading issue and come up with an amicable solution by September 30.

MCX-SX had moved the court last September against Sebi order that rejected its application to launch equity trading.

The court also suggested to Sebi to give MCX-SX "a fresh chance with an open mind", saying that for "small reasons, institutions should not be closed down as markets needs competition".

Justice DY Chandrachud advised the warring parties to come back to the court on September 30 with a workable solution through undertakings and assurances.

The Judge also advised Sebi to consider withdrawing the show-cause notice it had slapped on MCX-SX as most of the issues in the order have been resolved.

Last year, Sebi denied permission to MCX-SX to begin equity trading as it was apprehensive of the shareholding pattern in the private exchange promoted by Jignesh Shah-led Financial Technologies.

MCX spokesperson declined to comment on the court's direction, saying the issue is still part of the court proceedings.

Financial Technologies-promoted MCX-SX is currently the number one exchange in the currency derivatives market. The other two players are the National Stock Exchange (NSE) and United Stock Exchange (USE).

MCX-SX started operations in the currency derivatives in 2008 and Sebi on Wednesday gave a conditional one year extension to the privately-held exchange for trading in currency futures segment.