Sebi slaps penalty on 63 Moons Technologies

The Securities and Exchange Board of India (Sebi) on Tuesday penalised 63 Moons Technologies, formerly known as Financial Technologies (India) Limited for failure to seek prior approval for the change of name of the firm from stock exchanges. The firm changed its name last year after FTIL came under the scanner of regulators and multiple investigating agencies for the alleged Rs 5,6000000000 payment fraud at its subsidiary the National Spot Exchange Limited (NSEL). NSEL had suspended trading in July 2013 after the payment crisis. On Tuesday, Sebi in a ten-page order, Sebi said 63 Moons did not seek approval from stock exchanges — NSE and BSE — before changing its name from FTIL and imposed a fine of Rs 100000. 63 Moons Technologies had obtained a certificate of incorporation pursuant to change of name on May 27, 2016 from the Registrar of Companies (RoC), Chennai. Subsequently, it applied to the stock exchanges to update the name of the firm in their records. Under the Listing Obligations and Disclosure Requirements (LODR) Regulations of Sebi, a listed company is required to seek prior approval from exchanges before obtaining a name change. “... it is clear that the requirement of seeking prior approval from the stock exchanges(s) is a condition precedent before filing request of name change to RoC, which in fact has not been met by the noticee (63 Moons),” Sebi said.