SC dismisses Sebi petition on MCX-SX matter

The Supreme Court (SC) today disposed off a special leave petition filed by the Securities and Exchange Board of India (Sebi) seeking a stay on the Bombay High Court ruling in the MCX-SX matter.

Senior lawyers said, SC has asked Sebi to process MCX-SX application, for operating as a full scale stock exchange, in three months. SC has asked Sebi to amend their guidelines regarding shareholding of stock exchanges in three months. According to lawyers, SC was of the view that Sebi should consider MCX-SX application under the new regime announced by it this month, based on the Bimal Jalan Committee report.

Sebi had moved Supreme Court after Bombay High Court (HC) last month quashed Sebi's view that a buyback arrangement entered into by promoters of MCX-SX with other shareholders of the company was illegal. The HC had also dismissed most arguments of regulator like interpretation of rules regarding persons-acting-in-concert and shareholding norms.

Attorney general Ghulam Vahanvati had advised Sebi to file a special leave petition in the Supreme Court after HC verdict.