Multi Commodity Exchange of India i.e. MCX has been shocked by market regulator SEBI. SEBI has imposed a fine of Rs 25 lakh on MCX for insufficient revelations about the payment made to 63 Moons Technologies for software services. According to PTI news, the Securities and Exchange Board of India (SEBI) said in its order that the fine should be paid within 45 days.
The case is related to the disclosure about payment
According to the news, the case is related to the disclosure of the disclosure about the payment made about 63 Moons Technologies (earlier Financial Technologies India Limited) for trading software contracts. Let me tell you, MCX signed a trading software agreement with 63 Moons Technologies in 2003. Then, 63 Moons had complete ownership of MCX. In 2020, MCX decided to visit a new trading platform (CDP) and gave the development contract to TCS. However, the CDP rollout was several delays, due to which the CDP decided to expand the services at a much higher cost with 63 Moons.
Did not disclose the big payment being made
MCX revealed between September and December 2022 that it has expanded assistance and managed services for its existing trading and clearing platforms with 63 Moons, but did not disclose the big payment being made that is Rs 60 crore for October-December 2022 and Rs 81 crore per quarter to the half-yearly half to June 2023. It is a total of Rs 222 crore in three quarters (October 2022-June 2023). This amount was almost doubled from the company’s profit (Rs 118 crore) in FY 2021-22, yet it was revealed in January 2023.
This information was important
SEBI’s full-time member Ashwini Bhatia said that I have noticed that between October 2022-June 2023, the quarter paid by MCX for three quarters, which was a total of Rs 222 crore, was much higher than the annual profit of MCX for the last financial year 2021-22, which was Rs 118 crore. This information was important because the said quarter payment was many times more than the first -quarter payment made to 63 Moons.
SEBI’s full -time member Ashwini Bhatia said that the increase in quarter payment can be said to have a huge impact on MCX’s profitability. Such information should be considered as important information, which should have been revealed to the public according to the provisions of LODR (listing obligation and disclosure requirements) by MCX.
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