)
The Securities Appellate Tribunal will hear next month Financial Technologies India Limited's (FTIL's) appeal the Securities and Exchange Board of India. The matter has been adjourned to March 19th.
The tribunal hears appeals against decisions of the stock market regulator.
FTIL has moved SAT against the regulator before, following adverse orders related to its stake in exchanges and other market entities, passed after a payment crises at another trading platform in which FTIL had a stake.
The Securities and Exchange Board of India had required Financial Technologies to divest its stake in stock exchanges as it was not found to be 'fit and proper' to hold a stake in key market infrastructure institutions like stock exchanges.
The tribunal hears appeals against decisions of the stock market regulator.
FTIL has moved SAT against the regulator before, following adverse orders related to its stake in exchanges and other market entities, passed after a payment crises at another trading platform in which FTIL had a stake.
The Securities and Exchange Board of India had required Financial Technologies to divest its stake in stock exchanges as it was not found to be 'fit and proper' to hold a stake in key market infrastructure institutions like stock exchanges.
The market regulator's order came after the commodities regulator had also issued a similar one. The Forward Markets Commission had passed an order against FTIL following a Rs 5,600 crore payment crises at the National Spot Exchange Limited (NSEL), an FTIL subsidiary.
“A person who is not fit and proper to hold shares in a commodity futures exchange cannot be fit and proper to hold shares in recognised stock exchanges and clearing corporations. He poses the same danger to the interest of securities market as he does to the commodity futures market, as both require the same standard of integrity. So, there is no doubt that the declaration of FTIL as not fit and proper by FMC has direct bearing on the securities market,” Sebi's order had said.
Janak Dwarkadas, Senior Advocate is the counsel for Financial Technologies. Shiraz Rustomjee,Senior Advocate is the lawyer acting on behalf of the regulator.
“A person who is not fit and proper to hold shares in a commodity futures exchange cannot be fit and proper to hold shares in recognised stock exchanges and clearing corporations. He poses the same danger to the interest of securities market as he does to the commodity futures market, as both require the same standard of integrity. So, there is no doubt that the declaration of FTIL as not fit and proper by FMC has direct bearing on the securities market,” Sebi's order had said.
Janak Dwarkadas, Senior Advocate is the counsel for Financial Technologies. Shiraz Rustomjee,Senior Advocate is the lawyer acting on behalf of the regulator.
