J Sagar Associates (JSA) has won a Bombay High Court order for its long-standing client MCX Stock Exchange, which ordered the Securities and Exchange Board of India (SEBI), which was represented by Mumbai law firm K Ashar & Co, to make a decision on whether to allow MCX to become a full-fledged stock exchange.

JSA Mumbai partner Nitin Potdar advised MCX, which is one of his long-standing clients since 2008, and instructed advocate general Ravi Kadam to appear in court on behalf of the stock exchange having filed a writ petition on 16 July.

SEBI was represented by K Ashar & Co Mumbai partner Mihir Mody, who instructed the additional solicitor general D Khambatta.

MCX had applied for a full licence to begin offering equity and debt trading platforms although it alleged that SEBI had not taken a decision on the issue, despite MCX having complied with all norms.

Particularly, SEBI rules prohibit promoters in stock exchanges holding above 5 per cent of equity.

The legal issue was discussed in detail on last week’s television programme The Firm and Legally India’s review of the episode.

The Bombay High Court disposed of the decision ruling in favour of MCX and directing SEBI to make a decision on whether or not to admit MCX by 30 September.

The two promoters of MCX, Financial Technologies (India) Limited and Multi Commodity Exchange (India) Limited were also added as respondents in the writ petition and ordered by the court to pass board resolutions that they would not to breach the 5 per cent limit that individual shareholders are allowed to hold in stock exchanges.

Naik Paranjpe & Co has been instructed for respondent Financial Technologies and advocate Munir Merchant for respondent Multi Commodity Exchange.