INDIA: Penalty for breach of India substantial acquisitions rules in exchanges and clearing houses

Thursday March 20 2014

The Securities and Exchange Board of India (SEBI) has imposed a penalty on Financial Technologies (India) Ltd.(FTIL) as a result of its failure to meet the “fit and proper” requirements applicable to 2% shareholders under Indian substantial acquisitions rules in stock exchanges and clearing houses, in accordance with Regulations 19 and 20 of the Securities Contracts (Regulation)(Stock Exchanges and Clearing Corporations) Regulations, 2012.

FTIL has been ordered to divest the equity shares and/or any instrument that provides for entitlement for equity shares or rights over equity shares at any future date, held by it, directly or indirectly, in MCX-SX, MCX-SX CCL, DSE, VSE and NSEIL within 90 days through sale of shares and /or instruments. In addition, FTIL and the entities through whom it indirectly holds equity shares or any instrument entitling voting rights in MCX-SX, MCX-SX CCL, DSE, VSE and NSEIL shall cease to be entitled to exercise voting rights in respect of those shares or instruments, with immediate effect.

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