The Bombay High Court Friday directed the markets regulator, Securities and Exchange Board of India (SEBI) to resolve pending issues with MCX-SX promoters in a business-like manner and give thm a fresh chance.
Justice D.Y. Chandrachud also urged the SEBI to consider withdrawing its show-cause notice, based on which it passed its order to MCX-SX last year rejecting its application to start an equities trading platform, since most of the issues in the order have been resolved, an official said, requesting anonymity.
The two parties – SEBI and MCX-SX – have also been directed to return to the high court Sep 30 with a workable solution through assurances and undertakings.
The high court noted that for some small reasons, institutions should not be closed down as markets need competition.
After it secured recognition in 2009, MCX-SX was granted a one-year licence with a condition to comply with the Securities Contract (Regulation) – Manner of Increasing & Maintaining Public Shareholding in Recognised Stock Exchanges – within one year.
The other condition was it could only offer trading in currency future and would not be eligible for introducing any new class of contracts in securities till it fully complied with SEBI’s regulations.
Last year, the MCX-SX challenged the SEBI order rejecting its application to start the equities platform, on grounds that the former (MCX-SX) had not complied with its regulations.