The Bombay High Court on Tuesday directed market regulator SEBI to decide by September 30 on the application filed by MCX Stock Exchange seeking permission to start equity trading on its platform.
The Jignesh Shah-led group firm MCX Stock Exchange (MCX-SX) had moved the Bombay High Court complaining that the Securities and Exchange Board of India (SEBI) was not allowing it to start equity trading despite complying with all regulations.
In April this year, MCX-SX, which at present trades only currency derivatives, had applied to SEBI seeking permission to expand its operations. It MCX-SX moved high court complaining that regulator was not taking any decision on its application.
SEBI's lawyer contended that it needed some time to get information from 17 nationalised and scheduled banks, which are shareholders of MCX-SX, regarding buy-back agreements with the MCX-SX promoters.
The stock exchange pleaded that although it had complied with all Sebi regulations and norms to commence operations, it has not yet been given permission to commence equity trading.