Jignesh Shah’s 63 Moons Penalized by SEBI

Jignesh Shah is a pioneer in the field of stock and financial markets technologies to have worked hard to create a comprehensive market. He has always looked forward to create a people centric market. With efforts like his, India can actually dream of becoming a powerful economy in the world. With a new vision, FTIL changed its name to 63 Moons Technologies, and is the parent company of 18 technologies in Digital arena.

Previously Financial Technologies (India) Limited (FTIL), 63 Moons Technologies have now been fined by Security Exchange Board of India (SEBI) for not seeking approval from the stock exchange for the name change. The change was effected last year after Jignesh Shah led FTIL fell under the NSEL fiasco. NSEL was promoted by FTIL, which was supposed to stop trading in July 2013. 

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 Rs1 lakh. On May 27^th, 2016, 63 moons technologies had acquired a certificate from the Registrar of Companies (RoC), Chennai to change the name.

Any official statement from 63 Moons Technologies has not been received on the same. However, it applied to the stock exchange later in order to update their records. As per the listing obligations and disclosure requirements (LODR) regulations, any company ought to seek approval for the name changing procedure. The process takes place by submitting a certificate from a chartered accountant who confirms compliance to the conditions as per the regulations.

Sebi quoted, “….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 notice (63 Moons).”

The penalty of 1 lakh Rupees has been pinned to Jignesh Shah’s venture for the violation. “I note that there are no quantifiable figures available for assessing disproportionate gains or unfair advantage or specific loss suffered by the investors. I also note that no past default against the noticee has been revealed under examination,” Sebi’s adjudicating officer Rachna Anand said in the order. Justice is still aawaited after 4 years in the payment default.