- MCA to ascertain whether Financial Technologies (India) Ltd as holding co violated normsNSEL crisis: MCX, FTIL lock horns over plan to issue preferential sharesFinancial Technologies to shortlist bidders to buy MCX stake by Apr 25Multi-Commodity Exchange surges as Financial Technologies Ltd gears up to sell stake
to a small holding in the NSE.
While advocate Shiraz Rustomjee represented Sebi in the matter, senior counsel Janak Dwarkadas represented FTIL.
Dwarkadas argued that Sebi has not independently applied its mind on whether FTIL is fit & proper but has merely relied on the FMC order to pass its own directions. He also said that Sebi has no reason to verify the holdings of his client, which was strongly objected to by the Sebi counsel.
SAT too said Sebi could not base its order on the FMC order and that it has to make its own case as to how FTIL is not fit to own any stake in any exchange.
However, Rustomjee said in the light of the similar mechanisms for settlement and trading in commodities and securities market, it follows naturally that an entity which is not fit and proper in one cannot be fit and proper in the other.