The Securities and Appellate Tribunal (SAT) has issued a notice to SEBI in the matter involving its recent order against 63moons Technologies. On December 3, SEBI had rejected business permission to 63moons for providing software-related services in a specific segment. SEBI’s rejection came nearly three years after 63moons had applied for it.

SAT has now kept the matter for final disposal on January 29, sources told BusinessLine . The SEBI order will come into effect in three months.

Also read: 63moons to challenge SEBI ban on its STP Gate service

SEBI had rejected 63moon’s application in the STP (Straight-Through Processing) services segment saying the company and its promoters were assessed not ‘fit and profit’ by the erstwhile commodity market regulator Forwards Market Commission in 2013. STP is a software service for trade settlement, mainly for institutional players.

In 2018, a clause was inserted in the SEBI rule book which said that a STP technology provider has to be 'fit and proper'. There are only two large players in the STP segment, the other being NSDL.

Also read: 63moons’ loss is NSDL’s gain

63moons, which was earlier known as Financial Technologies India Ltd (FTIL), had started providing STP services in 2004 and holds a near-monopoly in the segment since then, with more than 90 per cent market share, as per a company release.

63moons has told the court that the provision of ‘fit and proper’ cannot be applied to any entity for a lifetime, the sources said.

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