The Securities and Exchange Board of India (SEBI) has found 63 Moons ‘unfit’, as per the provisions of Intermediaries Regulations read with clause 3(2)(iii) of the Straight Through Processing (STP) Guidelines.
STP is a mechanism that automates the end-to-end processing of transactions of the financial instruments. In 2002, SEBI first mandated the introduction of STP for electronic trade processing with a common messaging standard. In 2004, SEBI made it mandatory that all Institutional Trades executed on stock exchanges would be processed through the STP system.
In an order passed by the executive director of SEBI on December 3, the application for renewal by FTIL to act as STP Service provider under the SEBI Guidelines, 2004 has been rejected. It has been held that 63 Moons has been providing the STP services to Brokers, Custodians, and Fund Houses without the approval of SEBI.
Meanwhile, 63 Moons Technologies have expressed disbelief at the SEBI order. They said on Friday that it will challenge the order passed by markets regulator SEBI with respect to the company providing STP services.
Expressing ‘disbelief’ at the SEBI order, 63 Moons in a statement said it would challenge the ruling.
“63 Moons has always had the utmost faith in the judiciary and will be taking appropriate legal action in the higher judiciary forum,” the statement said.
The order has been challenged in the court of law and the matter is sub-judice, it said.
“SEBI coming out with such an order after over seven years, especially when the issue of fit and proper is still sub-judice will be disturbing the smooth functioning of the market,” they added.