The Bombay High Court had given Sebi two options with regard to its case against the commodity exchange, MCX, to either take fresh undertakings from the stock exchange or hear the matter afresh. Today, the Sebi....
The Bombay High Court had given Sebi two options with regard to its case against the commodity exchange, MCX, to either take fresh undertakings from the stock exchange or hear the matter afresh. Today, the Sebi chose the latter option, reports Ashwin Mohan of CNBC-TV18. Nonetheless, there seems to be quite a cloud of doubt hanging on how this case will get resolved in the coming weeks.
There is a two-step plan that has been proposed by the Bombay High Court yet again because Sebi was chose the second option of looking at the whole thing afresh. What is tobe noted is that Sebi was, nonetheless, not willing to retract its order against MCX-SX. It, in fact, wanted the Bombay High Court to set aside the Sebi order based on certain grounds.
Anyhow, there is now a two-step formula in place. Sebi could keep the show cause notice against MCX-SX in abeyance. Then Sebi sits with the MCX-SX and reconsiders their application for going into lines of business. During this stage, MCX-SX can give their undertakings, assurances or whatever concerns Sebi has.
If the regulator is not satisfied with the assurances or undertakings given by MCX-SX, then the abeyance of the show cause notice is lifted. Sebi hears MCX-SX once again, and then passes a fresh order.
There was however no clarity as to whether this would in fact be accepted by both parties. They have told the Bombay High Court that they will go back, speak to their clients and then return on October 14th to tell the Court whether or not this formula suits them.....back
The Bombay High Court had given Sebi two options with regard to its case against the commodity exchange, MCX, to either take fresh undertakings from the stock exchange or hear the matter afresh. Today, the Sebi chose the latter option, reports Ashwin Mohan of CNBC-TV18. Nonetheless, there seems to be quite a cloud of doubt hanging on how this case will get resolved in the coming weeks.
There is a two-step plan that has been proposed by the Bombay High Court yet again because Sebi was chose the second option of looking at the whole thing afresh. What is tobe noted is that Sebi was, nonetheless, not willing to retract its order against MCX-SX. It, in fact, wanted the Bombay High Court to set aside the Sebi order based on certain grounds.
Anyhow, there is now a two-step formula in place. Sebi could keep the show cause notice against MCX-SX in abeyance. Then Sebi sits with the MCX-SX and reconsiders their application for going into lines of business. During this stage, MCX-SX can give their undertakings, assurances or whatever concerns Sebi has.
If the regulator is not satisfied with the assurances or undertakings given by MCX-SX, then the abeyance of the show cause notice is lifted. Sebi hears MCX-SX once again, and then passes a fresh order.
There was however no clarity as to whether this would in fact be accepted by both parties. They have told the Bombay High Court that they will go back, speak to their clients and then return on October 14th to tell the Court whether or not this formula suits them.....back