FTIL examining Sebi's ruling on 'fit and proper'

Market regulator directed the company to sell shares in MCX-SX and other entities within 90 days on the ground that it was not 'fit and proper'

Financial Technologies today said it is examining Sebi's ruling that it is not "fit and proper" to own stakes in any stock exchange.

"We wish to inform you that our legal team is examining the Sebi order and the company will take appropriate steps as suggested by the lawyers in due course of time," Financial Technologies India Ltd (FTIL) said in regulatory filing to the stock exchanges.

The Securities and Exchange Board of India (Sebi), yesterday, directed Jignesh Shah-led FTIL to sell shares in MCX-SX and other entities within 90 days on the ground that it was not "fit and proper" to own stakes in any exchange.

On reports that FTIL is looking for buyer in Mauritius business, the company said it would not like to offer any comments.

"As a responsible corporate and as a matter of good corporate governance practice, any price sensitive information pertaining to operations or performance of the company, or such other information as required under Clause 36 of the Listing Agreement, will be first notified to the stock exchanges to comply with the Listing Agreement," FTIL added.

Meanwhile, MCX said that it "is in no way concerned, associated or connected" over Sebi's order that directed FTIL to sell shares in MCX-SX and other bourses.

Yesterday Sebi ruled that FTIL is not "fit and proper" to own stakes in any stock exchange and also directed it to divest existing holdings in MCX-SX and four other entities.

Besides MCX Stock Exchange, the group holds equity in its rival NSE, Delhi Stock Exchange (DSE), Vadodara Stock Exchange (VSE) and MCX-SX Clearing Corporation (MCX-SX CCL) and all these holdings would need to be disposed off within 90 days.