Mumbai: The Securities Appellate Tribunal (SAT) on Monday reserved its verdict in 63 moons Technologies Limited's challenge to the Securities and Exchange Board of India (SEBI) order disallowing the company from providing Straight Through Processing (STP) Gate Services.
The tribunal has kept the SEBI order in abeyance. This, in effect, means that till the passing of a final decision by the SAT, the SEBI order will remain ineffective, 63 moons said in a statement.
63 moons said, "We are hopeful of justice being delivered."
On December 3, 2020, the SEBI passed an order rejecting the approval to 63 moons for providing STP Gate Services on the basis of 'Fit and Proper' order that was passed by the Forward Markets Commission (FMC), seven years ago.
Generally, financial firms use STP to pass information electronically in order to optimise the speed at which they process transactions. This eliminates the need for a hands-on re-entry of data that has already been completed at the source.
According to the SEBI, STP guidelines stipulate that no person shall act as an STP service provider unless it obtains approval from the regulator.
Expressing "disbelief" at the SEBI order in December last, 63 moons technologies had stated that it would challenge the market regulator ruling. The 'fit and proper' order passed against the company in 2014 specifically deals with barring persons or entities from holding an equity stake in any exchange platform and has no bearing on providing technology services.