Bombay High Court on Wednesday asked capital market regulator Securities and Exchange Board of India to reconsider within a month MCX's application for setting up a stock exchange and set aside its order.
Justices D Y Chandrachud and Anoop V Mohta passed the order on Wednesday after hearing an appeal filed by MCX-SX in October 2010 against Sebi for rejecting its application to set up a new equities trading platform.
In the last hearing in November, the high court had reserved the judgement after the two parties -- Sebi and MCX-SX -- were unable to settle the matter out-of-court.
MCX-SX, promoted by Financial Technologies, has been maintaining that the regulator did not give a fair hearing to its application.
"The Sebi was, is, and will always remain a respected regulator. The MCX-SX stance was not against regulatory institution, but was for principles.
"We stand vindicated and always have full faith in our judiciary.
"We remain committed to growth and development of the country's financial markets," MCX-SX spokesperson said after the court order this morning.
Sebi could not be reached immediately for comments.