MUMBAI: The Bombay High Court on Wednesday set aside the order by capital market regulator - Securities and Exchange Board of India, rejecting MCX-SX's application to set up a stock exchange, marking a major victory for the firm.
The high court asked Sebi to reconsider the application in one month.
The Bombay High Court in November 2011 reserved judgement on the petition filed by MCX Stock Exchange (MCX-SX), which challenged market regulator Sebi's refusal to allow it to trade in stocks and other securities.
In 2010, Sebi rejected MCX-SX's application saying that the exchange's promoters did not adhere to the prescribed shareholding structure as the two promoters were found to be persons acting in concert.
The case relates to Sebi's rejection on MCX-SX's application for starting its full-fledged stock exchange operation, which will also include trading platform for equities.
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.
Multi-Commodity Exchange (MCX), the first Indian bourse to list on an exchange, debuted at Rs 1,387, a 34% premium to its issue price and has the potential to rise up to Rs 1650-1700 in the long term, say analysts.
Shares of Financial Technologies, one of the promoters of MCX-SX were up 7%, while MCX, another promoter, were up 1.6%.
The high court asked Sebi to reconsider the application in one month.
The Bombay High Court in November 2011 reserved judgement on the petition filed by MCX Stock Exchange (MCX-SX), which challenged market regulator Sebi's refusal to allow it to trade in stocks and other securities.
In 2010, Sebi rejected MCX-SX's application saying that the exchange's promoters did not adhere to the prescribed shareholding structure as the two promoters were found to be persons acting in concert.
The case relates to Sebi's rejection on MCX-SX's application for starting its full-fledged stock exchange operation, which will also include trading platform for equities.
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.
Multi-Commodity Exchange (MCX), the first Indian bourse to list on an exchange, debuted at Rs 1,387, a 34% premium to its issue price and has the potential to rise up to Rs 1650-1700 in the long term, say analysts.
Shares of Financial Technologies, one of the promoters of MCX-SX were up 7%, while MCX, another promoter, were up 1.6%.
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