63 moons technologies has decided to challenge the Sebi order banning the company from providing STP (Straight Through Processing) Gate Services on the basis of ‘Fit & Proper’ order passed by FMC seven years ago.
63 moons technologies (formerly Financial Technologies) had submitted an application for renewal of approval to act as STP Service Provider on April 25, 2016 for a period of three years from June 30, 2016 to June 29, 2019.
On Thursday, the market regulator rejected the renewal application but said since the company is giving STP services to 300 brokers, 15 custodians and 170 fund houses and sudden stoppage of such services which will not be in the interest of investors in securities market. Therefore, without prejudice, the company can provide necessary services for three months from date of receipt of this order.
‘Fit & Proper’ order
Reacting to the order, 63 moons said the company expressed shock the SEBI order rejecting the approval for providing STP Gate Services on the basis of ‘Fit & Proper’ order passed by FMC seven years ago.
The latest order of SEBI is with regards to STP gate service only and it has nothing to do with any other technology services by the group.
The “Fit and Proper” order passed against 63 Moons in 2014 specifically deals with barring persons or entities from holding equity stake in any exchange platform and has no bearing on providing technology services. It has been almost seven years since the order of Fit and Proper has been passed and has already been challenged by 63 moons in the court of law. The matter is, therefore, sub-judice.
Since 2003 till date, 63 moons technology holds over 75 per cent market share in all segments including its service offerings to MCX and MSEI, it has the distinction of having 97 per cent market share in STP gate.
In the backdrop of NSE withdrawing its trading platform ‘NOW’, 63 moons’ ODIN remains the best solution available across multiple asset class in the market. In this condition, the intention of SEBI’s present order is unexplainable, said the company in a statement.