HC reserves order in MCX-SX plea against SEBI
26 November 2011
The Bombay High Court today reserved its judgment on a petition filed by MCX Stock Exchange (MCX-SX) against the Securities and Exchange Board of India's refusal to allow it to launch a full-fledged stock exchange trading in shares and securities.
During the hearing today, Multi-Commodity Exchange of India Ltd (MCX) and Financial Technologies (India) Ltd (FTIL), the promoters of MCX-SX, pledged to restrict their combined holding in it to 5 per cent from the current 10 per cent to satisfy capital market norms.
This came after the division bench of Justices Dhananjay Chandrachud and Anup Mohta noted that the issue of share-holding was at the heart of the matter. After MCX-SX counsel said that the two promoters were ready to dilute their holding, the court asked SEBI if it was prepared to reconsider its decision on MCX-SX application.
However the SEBI counsel, additional solicitor-general Darius Khambata, replied in the negative.
He sought time till Wednesday, saying that SEBI wanted to file additional information and arguments on the case.
The case relates to SEBI's rejection last September of MCX-SX's application for starting a full-fledged stock exchange operation.