sebi:WTM/KMA/MRD/296/09/2010
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Facts / Headnote
Application for permission to deal in additional segments rejected - not in interest of trade and public interest
Provisions invoked
- s. 11
- s. 11(1)
- s. 370
- s. 12A
- s. 77A
- s. 16
- s. 12
- s. 4A
- s. 391
- s. 13
- s. 29A
- s. 4B
- s. 4(1)
- s. 16(1)
- s. 25
- s. 31
- s. 100
- s. 4(4)
- s. 4B(8)
Regulations
- Reg. 4
- Reg. 11
- Reg. 3
- Reg. 2(1)(e)
- Reg. 8
- Reg. 3(1)
- Reg. 11(2)
- Reg. 8(1)
- Reg. 2(1)
- Reg. 11(5)
- Reg. 2(1)(e)(2)
- Reg. 11(3)
- Reg. 11(1)(b)
Parties
- MCX Stock Exchange Limited
Holding
MCX-SX was held not in full compliance with the MIMPS Regulations and its application dated April 7, 2010 for permission to deal in interest rate derivatives, equity, futures and options and other segments was found not to be in the interest of trade and public interest.
Full text
Page 2 of 68 1. MCX Stock Exchange Limited (hereinafter referred to as MCX-SX or the Applicant) filed a letter with Securities and Exchange Board of India (hereinafter referred to as SEBI) on April 7, 2010. This letter (hereinafter referred to as the Application) inter alia seeks permission to deal in interest rate derivatives, equity, futures and options on equity and wholesale debt segments and all other segments permitted to the Bombay Stock Exchange limited and the National Stock Exchange of India Limited. MCX-SX also requested SEBI to consider its application for SME Exchange as an additional segment within itself for operations. Subsequently, MCX-SX filed a writ petition (No. 1440 of 2010) before the Honourable High Court of Judicature at Bombay, which was disposed of by the Honourable High Court, vide order dated August 10, 2010 with the following directions: “(a) Respondent No.1 SEBI will take a final decision in the matter latest by 30th September, 2010. In order to ensure that the aforesaid time limit is treated as mandatory and peremptory, SEBI shall write letters to the shareholders of the petitioner- company, from whom such information is awaited, calling upon them to send necessary information to SEBI within 10 days from today.
Page 3 of 68 the SCR Act) read with Section 11(1) of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as the SEBI Act) detailing the prima facie observations of SEBI. An opportunity of hearing was also afforded to MCX-SX on September 6, 2010, on which date, Mr. J.J. Bhatt, Senior Advocate made elaborate submissions on behalf of MCX-SX. Mr. Joseph Massey, Managing Director of MCX-SX along with other officials of MCX-SX was also present during the hearing. MCX-SX also filed its written submissions on September 16, 2010, as undertaken by it during the course of hearing.
Page 4 of 68 the compliance referred to above are ensured. In the letter dated April 7, 2010 (the Application), MCX-SX had informed that it had successfully achieved compliance with the MIMPS Regulations and enclosed therewith a list of shareholders and the present shareholding in the stock exchange and sought permission from SEBI to deal in new classes of securities. It is this Application of MCX-SX, which would be disposed of herein. WRITTEN REPLY OF THE APPLICANT
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Source: SecMarx — sebi:WTM/KMA/MRD/296/09/2010. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.