63 moons to challenge SEBI order on STP Gate Services

New Delhi, Dec 4 : 63 moons technologies on Friday said it would challenge the SEBI order, which rejected its renewal application for providing STP Gate Services, and take appropriate legal action in the higher judiciary forum.
Expressing disbelief at the SEBI order rejecting the approval for providing STP Gate Services on the basis of ‘Fit & Proper’ order passed by FMC seven years ago, the company said the Fit and Proper order passed against 63 moons 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.
In an order passed by the SEBI last night, the application for renewal (for the period June 30, 2016 to June 29, 2019) by 63 moons technologies, earlier known as Financial Technologies India Limited, to act as STP Service provider under the SEBI (STP Centralised Hub and STP Service Providers) Guidelines, 2004 has been rejected. It held that 63 Moons has been providing the STP services to brokers, custodians, and fund houses without the approval of SEBI.
63 moons 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 latest order of SEBI is with regards to STP gate service only and it has nothing to do with any other technology services by the group, it added.
Notably, since 2003 till date, 63 moons technology has been the pioneer and market leader as well as most stable and credible technology service provider for all segments of the market. While it holds more than 75 per cent market share in all segments including its service offerings to MCX and MSEI, it has the distinction of having 97 per cent market share in STP gate.