HC asks MCX-SX, SEBI to resolve issues amicably by Sept 30

The spat between Multi Commodity Exchange Stock Exchange (MCX-SX) and Securities and Exchange Board of India (SEBI) has been continuing for some time now for the permission to trade in the equities segment. The Bombay High Court suggested two routes for the market regulator to handle the application of the exchange. CNBC-TV18's Ashwin Mohan reports on what led to the court's suggestions.

The Bombay HC today asked market regulator SEBI and MCX-SX to resolve their issues over equity trading through discussions and come up with an amicable solution by September 30.
MCX-SX had last September moved the HC challenging a SEBI order rejecting its application to launch equity trading.
Justice DY Chandrachud advised the warring parties to come back to the court on September 30 with a workable solution through undertaking and assurances.
The Judge also advised Sebi to consider withdrawing the show-cause notice it had slapped on MCX-SX as most of the issues in the order have been resolved.
Last year Sebi denied permission to MCX-SX to begin equity trading as it was apprehensive of the shareholding pattern in the private exchange promoted by Jignesh Shah-led Financial Technologies.
MCX spokesperson declined to comment on today's HC direction, saying the issue is still part of the court proceedings.
The HC also told Sebi to give MCX-SX a fresh chance with an open mind, saying for "small reasons, institutions should not be closed down as markets needs competition".
Financial Technologies-promoted MCX-SX is currently the number one exchange in the currency derivatives market. The other two players are the National Stock Exchange (NSE) and United Stock Exchange (USE).
MCX-SX started operations in the currency derivatives in 2008 and Sebi on Wednesday gave a conditional one year extension to the privately-held exchange for trading in currency futures segment. (With inputs from PTI) Also watch the accompanying video for more details...