MCX-SX can't be allowed to seek authorisation from HC: SEBI

In its response to the High Court in the MCX-SX case, the Securities and Exchange Board of India (SEBI) has pointed out that the executive powers of recognising and authorising stock exchanges rest with SEBI.

Hence, the regulator's stance is that MCX cannot seek such an authorisation from the High Court, reports CNBC-TV18's Ashwin Mohan, quoting sources. Essentially, what SEBI is trying to say is that MCX is trying to obliterate the distinction between judicial and executive powers. SEBI has also gone onto say in its reply that the MCX-SX complaint to the Central Vigilance Commission is infact an attempt to pressurise and intimidate SEBI. SEBI has also said that MCX-SX misled SEBI by saying that it had not entered into any buyback arrangements with Punjab National Bank. It has also said that the MCX-SX applications for the F&O segments and for the equity segments were premature as it had not been in compliance with the MIMPS regulations, which are at the crux of this case. MIMPS is the manner of increasing and maintaining public shareholding in recognised stock exchanges. SEBI has also pointed out that till date MCX-SX has not complied with the MIMPS regulations. CNBC-TV18 also understands that the next hearing of this case is scheduled on August 3. It will be interesting to see whether the Bombay High Court entertains MCX-SX