SC asks SEBI to reconsider MCX-SX plea in 3 months
11 Apr 2012
The Supreme Court has asked the Securities and Exchange Board of India (SEBI) to consider afresh an application by the MCX Stock Exchange (MCX-SX) seeking the market regulator's permission to launch an equity trading platform alongside its multi-commodity trading platforms.
A Supreme Court bench of Justices Aftab Alam and C K Prasad directed SEBI to reconsider MCX SX's plea within three months.
The court's order came on a petition by SEBI, challenging a Bombay High Court verdict that set aside its order rejecting the MCX-SX's application to operate a stock exchange on the lines of the Bombay Stock Exchange and the national Stock Exchange.
MCX-SX currently trades on currency derivatives.
Passing the order, the bench said it considered the case in the light of a consensus reached between SEBI and MCX-SX regarding an amendment to the manner of increasing and maintaining public shareholding in recognised stock exchanges (MIMPS) rules.
The bench, however, asked SEBI not to be influenced by various observations made by the Bombay High Court in its judgment that set aside a SEBI order.