Sebi plays hardball with Financial Technologies

Sebi has also sought a written clarification from FTIL over the anticipated impact of the restructuring exercise on MCX-SX. Last week, FTIL had appointed a committee to oversee a restructuring process that could possibly feature divestment of FTIL‘s stake, across exchanges.

March 06, 2014 / 20:25 IST

26 Aug, 2025 12:21

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After the Bombay HC’s refusal to grant a stay on the FMC ‘Fit and Proper’ order, it’s the tunr of the market regular to up the ante against the Jignesh Shah led FTIL.

Sebi today sought a written reply from FTIL, explaining why the market regulator should not proceed with directing FTIL from divesting stake in MCX-SX, in the absence of a HC stay on the FMC order.

Sebi has also sought a written clarification from FTIL over the anticipated impact of the restructuring exercise on MCX-SX. Last week, FTIL had appointed a committee to oversee a restructuring process that could possibly feature divestment of FTIL’s stake, across exchanges.

In December, last year, the FMC had passed an order deeming FTIL and Jignesh Shah, as not “Fit and Proper” to be operating a commodity exchange. Consequently, based on the FMC order, Sebi slapped FTIL with a showcause notice, questioning FTIL’s shareholding in MCX-SX.

FTIL has been granted time till Mar 16 to file its reply. Meanwhile, over the course of the 90 minute long hearing, FTIL clarifies its stance against the FMC’s order. FTIL also reiterated its position of staying vary of the forthcoming rights issue of MCX-SX. Nat participating in the rights issue would result in FTIL’s stake being diluted to 2.5%. It currently holds 5% over and above warrants.