SAT places SEBI order in abeyance in 63 Moons STP Gate case
The Securities Appellate Tribunal (SAT) today heard the 63 Moons Technologies Limited's challenge to the Securities and Exchange Board of India (SEBI) order disallowing the Company from providing Straight Through Processing (STP) Gate Services and has reserved the judgment.
While passing the order, the Tribunal has kept the SEBI Order in abeyance. This in effect means that till the passing of the final decision by the SAT, the SEBI Order will remain ineffective.
On December 3, 2020 SEBI had passed an order rejecting the approval to 63 Moons for providing STP Gate Services on the basis of 'Fit & Proper' order that was passed by Forward Markets Commission (FMC) seven years ago.
STP guidelines stipulate that no person shall act as an STP service provider unless it obtains approval from the regulator.
Financial firms use STP to pass information electronically in order to optimize 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.