The Bombay High Court on Wednesday (March 14, 2012), ruled in favour of MCX-SX in its case against market watchdog Sebi, as per media reports.
Last September, Sebi rejected MCX-SX's application seeking permission to start a stock exchange, saying that the bourse had not complied with the norms on shareholding structure.
The Sebi norms restrict the promoters' stake in the exchange, and the regulator alleged that in MCX-SX's case, the shareholding was higher than the stipulated level.
In the last hearing in November 2011, it was agreed that Multi Commodity Exchange ( MCX) and Financial Technologies India (FTIL) - promoters of the exchange - will reduce their holdings in the exchange to 5% from 10%.
MCX and FTIL previously held 51% and 49% respectively in the stock exchange. They later brought their holdings down by divesting to financial institutions and issuing convertible warrants with an option to buy them back in the future.
....more info
Last September, Sebi rejected MCX-SX's application seeking permission to start a stock exchange, saying that the bourse had not complied with the norms on shareholding structure.
The Sebi norms restrict the promoters' stake in the exchange, and the regulator alleged that in MCX-SX's case, the shareholding was higher than the stipulated level.
In the last hearing in November 2011, it was agreed that Multi Commodity Exchange ( MCX) and Financial Technologies India (FTIL) - promoters of the exchange - will reduce their holdings in the exchange to 5% from 10%.
MCX and FTIL previously held 51% and 49% respectively in the stock exchange. They later brought their holdings down by divesting to financial institutions and issuing convertible warrants with an option to buy them back in the future.
....more info