The Securities Appellate Tribunal (SAT) has kept a SEBI order in abeyance with regard to business permission to 63moons Technologies. SEBI had disallowed the company from providing Straight Through Processing (STP) Gate Services. SAT’s Monday order means that till the tribunal passes a final decision on the matter, the SEBI order will remain ineffective, 63moons said in a release.

The SEBI, on December 3, 2020, has passed an order rejecting the approval to 63 moons for providing STP Gate Services on the basis of ‘Fit & Proper’ order that was passed by Forward Markets Commission (FMC) seven years ago.

There are only two large players in the STP segment. Another player is NSDL.

SEBI’s reasoning for the move was that the company and its promoters were assessed not ‘fit and profit’ by the erstwhile commodity market regulator Forwards Market Commission in 2013. The business segment where SEBI had rejected the application is called STP services, which in the technology jargon is the software service for trade settlement mainly for institutional players.

In 2018, SEBI inserted a clause saying that a STP technology provider has to be a ‘fit and proper’ person.

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

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

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