63 Moons Technologies said on Friday that it would challenge the order placed by market regulator Sebi in relation to direct ordering company (STP) services. On Thursday, the Securities and Exchange Board of India (SEBI) stated that 63 Moons is offering STP services without its approval and that the company will be given three more months to avoid any potential disruption to securities market participants. Is permitted to provide such services.
Typically, financial firms use STPs to pass information electronically to the speed with which they process transactions. This eliminates the need for hand re-entry of data that has already been completed at the source. The watchdog’s instructions were part of an order in which it rejected 63 Moon’s application seeking renewal of approval to provide STP services based on the फिटfit and proper ‘criteria.
In a statement expressing “disbelief” over the SEBI order, 63 Moon said it would challenge the ruling. “63 Moons always has great faith in the judiciary and will take appropriate legal action in the High Judiciary Forum,” the statement said.
63 Moons, formerly known as Financial Technologies (India) Limited (FTIL), sought approval to act as an STP service provider on April 25, 2016 for the period from June 30, 2016 to June 29, 2019. Has gone. In a 23-page order on Thursday, Sebi executive director Anand R. Baver rejected the application for renewal of approval relating to the period from April 17, 2018 to June 29, 2019. The rejection is based on ‘fit and proper’ criteria.
According to 63 Moons’ statement, the ‘fit and proper’ order passed against the company in 2014 specifically deals with individuals or entities holding equity stake in any exchange platform and has no bearing on providing technology services . The order has been challenged in a court of law and the matter is sub-judicial.
The company insisted that the latest SEBI order pertains only to STP services and has nothing to do with any other technology services by the group. “SEBI has been coming up with such an order after more than seven years, especially when the just and proper issue is still sub-judicial, which will spoil the smooth functioning of the market,” he said.
It also said that the allegations of undue influence of the promoter are baseless. Shares of 63 Mons closed down nearly five percent at Rs 85.35 in afternoon trade on the BSE.