In a major setback to crisis-hit Jignesh Shah-led Financial Technologies group, Sebi on Wednesday ruled it is not “fit and proper” to own stakes in any stock exchange and directed it to divest existing holdings in MCX-SX and four other entities.

Besides MCX Stock Exchange, the group holds equity in its rival NSE, Delhi Stock Exchange (DSE), Vadodara Stock Exchange (VSE) and MCX-SX Clearing Corporation (MCX-SX CCL) and all these holdings would need to be disposed off within 90 days.

The Securities and Exchange Board of India (Sebi) order comes at a time when the MCX-SX is under the scanner of CBI for alleged irregularities in granting of licence to it in 2008 as well as subsequent renewals.

Financial Technologies (India) Ltd is the flagship firm of the Shah-led group and one of the original promoters of MCX-SX.

In a late evening order, Sebi has said that FTIL is not a “fit and proper person to acquire or hold any equity share or any instrument that provides for entitlement for equity shares or rights over equity shares at any future date, in a recognised stock exchange or clearing corporation”.

This would be applicable for both direct and indirect holdings of FTIL in stock exchanges and clearing corporations.

Cracking the whip, the Securities and Exchange Board of India (Sebi) has directed FTIL to offload direct and indirect holdings in in MCX-SX, MCX-SX CCL, DSE, VSE and NSEIL within 90 days.

Besides, 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, according to Sebi.