SAT notices to SEBI in 63 moons appeal against STP Gate order

The SAT has kept the matter for final hearing and disposal on January 29, 2021, a statement by 63 moons technologies said on Monday.

It may be noted that the SEBI passed an order, rejecting the approval for providing STP Gate Services to 63 moons on the basis of ‘Fit & Proper' order that was passed by the Forward Market Commission (FMC) seven years ago.

As the order is yet to take effect, the SAT saw no need to consider staying the SEBI order at this stage, according to the statement.

The Tribunal has questioned the SEBI's rationale on considering the amendment that was passed in 2018 as the basis for rejecting an application for approval that was made in 2016.

The Tribunal also wondered as to how long can a person be construed as "Not Fit & Proper" as the order under challenge was based on an FMC order that was passed seven years ago.

Earlier, expressing disbelief at the SEBI order rejecting the approval for providing STP Gate Services on the basis of ‘Fit & Proper' order passed by the FMC seven years ago, the company said the Fit and Proper order passed against 63 moons in 2014 specifically deals with barring persons or entities from holding an equity stake in any exchange platform and has no bearing on providing technology services.

In an order passed by the SEBI, the application for renewal (for the period June 30, 2016 to June 29, 2019) by 63 moons technologies, earlier known as Financial Technologies India Limited,  to act as STP Service provider under the SEBI (STP Centralised Hub and STP Service Providers) Guidelines, 2004 has been rejected.

Notably, since 2003 till date, 63 moons technology has been the pioneer and market leader as well as most stable and credible technology service provider for all segments of the market. While it holds more than 75 per cent market share in all segments including its service offerings to MCX and MSEI, it has the distinction of having 97 per cent market share in STP gate.