The Securities and Appellate Tribunal (SAT) has issued a notice to SEBI in the matter involving its recent order against 63moons Technologies. On December 3, SEBI had rejected business permission to 63moons for providing software-related services in a specific segment. SEBI’s rejection came nearly three years after 63moons had applied for it.
SAT has now kept the matter for final disposal on January 29, sources told BusinessLine. The SEBI order will come into effect in three months.
SEBI had rejected 63moon’s application in the STP (Straight-Through Processing) services segment saying the company and its promoters were assessed not ‘fit and profit’ by the erstwhile commodity market regulator Forwards Market Commission in 2013. STP is a software service for trade settlement, mainly for institutional players.
In 2018, a clause was inserted in the SEBI rule book which said that a STP technology provider has to be ‘fit and proper’. There are only two large players in the STP segment, the other being NSDL.
Also read: 63moons’ loss is NSDL’s gain
63moons, which was earlier known as Financial Technologies India Ltd (FTIL), had started providing STP services in 2004 and holds a near-monopoly in the segment since then, with more than 90 per cent market share, as per a company release.
63moons has told the court that the provision of ‘fit and proper’ cannot be applied to any entity for a lifetime, the sources said.