63 moons technologies ltd. said it would challenge the Securities and Exchange Board of India’s (SEBI) order which rejected the approval for providing STP Gate Service on the basis of ‘Fit & Proper’ order passed by Forward Market Commission (FMC) seven years ago.
“The Fit and Proper order passed against 63 moons in 2014 specifically deals with barring persons or entities from holding equity stake in any exchange platform and has no bearing on providing technology services,” 63 moon said.
“It has been almost seven years since the order of Fit and Proper has been passed and has already been challenged by 63 moons in the court of law. The matter is therefore sub judice,” the company said in a statement.
The latest order of SEBI is with regard to STP Gate Service only and it has nothing to do with any other technology services by the group, it clarified.
“Since 2003 till date, 63 moons’ technology has been the pioneer and No. 1 as well as most stable and credible technology service provider for all segments of market. While it holds more than 75% market share in all segments including its service offerings to MCX and MSEI, it has the distinction of having 97% market share in STP Gate,” it said.
SEBI coming out with such an order after over seven years, especially when the issue of Fit & Proper is still sub judice, will be disturbing the smooth functioning of the market, it said.
“The management of 63 moons is completely professional and allegation of undue influence of Promotor is unfounded and is to be dismissed,” it said adding, “63 moons will be taking appropriate legal action in the higher judiciary forum.”
