The Bombay High Court has directed Jignesh Shah and Financial Technologies to approach the Court if adverse action is taken by any other regulator based on the Forward Markets Commission’s ‘not fit and proper’ ruling.
Hearing Shah’s plea to quash the FMC order, the Court on Saturday directed the FMC to respond before the case is taken up for hearing again on January 8.
The petition was mentioned by Financial Technologies counsel Janak Dwarkadas before a bench headed by Chief Justice Mohit Shah. The petitioner also prayed for interim relief to the extent of granting a stay on the FMC order until the matter is finally decided by the High Court.
The Court direction gives temporary relief for Shah and the company from adverse action by other market regulators till January 8.
Asked whether Sebi has sent a show cause notice to Financial Technologies following the FMC order, a spokesperson of the company said it had not received any notice till Saturday afternoon.
Shah’s counsel in the Court argued that the FMC order is premature as there were so many investigative agencies still probing the Rs 5,600-crore settlement crises at the National Spot Exchange, which abruptly stopped trading on August 1.