FTIL moves SAT against Sebi order on 'fit and proper' status

Financial Technologies, promoted by Jignesh Shah, has moved the Securities Appellate Tribunal challenging Sebi's ruling that the company was not fit to have stake in any stock exchange.
Financial Technologies (India) Ltd is the flagship firm of Shah group, which is battling the Rs 5,600 crore payment crisis at group entity National Spot Exchange Ltd (NSEL).
When asked whether FTIL has challenged Sebi order on 'fit and proper' status at the tribunal, a company spokesperson said: "Yes, we have filed it and we have no further comments."
The Securities and Exchange Board of India (Sebi) on March 19 ruled that FTIL was not "fit and proper" to own stakes in any stock exchange and directed it to divest existing holdings in MCX-SX and four other entities.

FTIL is not a "fit and proper person to acquire or hold any equity share or any instrument that provides for entitlement for equity shares or rights over equity shares at any future date, in a recognised stock exchange or clearing corporation", Sebi had said.
Besides MCX Stock Exchange, the group was asked to offload its holdings in rival NSE, Delhi Stock Exchange (DSE), Vadodara Stock Exchange (VSE) and MCX-SX Clearing Corporation (MCX-SX CCL).

Besides, FTIL and the entities through whom it indirectly holds equity shares or any instrument entitling voting rights in MCX-SX, MCX-SX CCL, DSE, VSE and NSE shall cease to be entitled to exercise voting rights in respect of those shares or instruments, with immediate effect, Sebi had said.

In December last year, Sebi had issued show cause notice asking how Shah and FTIL were 'fit and proper' to run any exchange in the wake of Rs 5,600 crore NSEL payment crisis.
FTIL and MCX were among the original promoters of MCX-SX, the country's youngest exchange, and following a restructuring they were shifted to public shareholder category.
The rejig was ordered by Sebi in the wake of the crisis at National Spot Exchange Ltd (NSEL), part of Shah-led group.