63 Moons Technologies Ltd. on Monday said Securities Appellate Tribunal has reserved the judgment on the firm’s challenge to Securities and Exchange Board of India’s order which disallowed it from providing Straight Through Processing gate services.
“While passing the order, the Hon’ble Tribunal has kept the SEBI Order in abeyance,” the firm said in a press release.
This in effect means that till the passing of the final decision by the Tribunal, the SEBI order will remain ineffective, it added.
“We are hopeful of justice being delivered,” the company said in a statement.
Order of the tribunal has not yet been made available on the website.
In December 2020, the Securities and Exchange Board of India said 63 Moons has been offering Straight Through Processing services without its approval and allowed the company to provide such services for three more months to clients in order to avoid any possible disruptions for securities market participants.
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.
The watchdog’s directions were part of an order wherein it rejected 63 Moons’ application seeking renewal of approval to provide STP services on the basis of ”fit and proper” criteria.
Earlier known as Financial Technologies (India) Ltd., 63 Moons, on April 25, 2016 sought approval to act as a STP service provider for the period from June 30, 2016 to June 29, 2019.
As per the order passed by SEBI in December 2020, SEBI Executive Director Anand R Baiwar rejected the application for renewal of approval relating to the period from April 17, 2018 to June 29, 2019.
The rejection is on the basis of ”fit and proper” criteria.