The Securities and Exchange Board of India (SEBI) has notified the withdrawal of recognition granted to the Indian Commodity Exchange Limited (ICEX). Originally recognized as an ‘association’ under the Forward Contracts (Regulation) Act, 1952, ICEX became a deemed stock exchange following the merger of the Forward Market Commission with SEBI. In 2022, SEBI withdrew ICEX’s recognition, which was later challenged and set aside by the Securities Appellate Tribunal with conditions. Subsequently, ICEX requested regulatory relaxations or permission to voluntarily surrender its recognition. On December 10, 2024, SEBI allowed ICEX to exit as a stock exchange, subject to specific conditions. The recognition withdrawal takes effect upon publication of the notification in the Official Gazette.
SECURITIES AND EXCHANGE BOARD OF INDIA
NOTIFICATION
Mumbai, the 24th December, 2024
No. SEBI/LAD-NRO/GN/2024/222.—Whereas the erstwhile Forward Market Commission, vide Notification dated October 9, 2009 bearing number S.O. No. 2565 (E), granted recognition to the Indian Commodity Exchange Limited as an ‘association’ in terms of section 6 of the Forward Contracts (Regulation) Act, 1952 (since repealed).
2. And whereas sub-section (1) of section 28A of the Forward Contracts (Regulation) Act, 1952 provided that pursuant to the merger of the Forward Market Commission with the Securities and Exchange Board of India, all the associations recognised under the Forward Contracts (Regulation) Act, 1952 were deemed to be recognised stock exchanges under the Securities Contracts (Regulation) Act, 1956. Accordingly, the Indian Commodity Exchange Limited became a deemed recognised stock exchange under the Securities Contracts (Regulation) Act, 1956.
3. And whereas sub-section (1) of section 5 of the Securities Contracts (Regulation) Act, 1956 read with the Notification dated September 13, 1994 bearing number S.O. 672 (E) issued by the Ministry of Finance provides that where the Securities and Exchange Board of India is of the opinion that the recognition granted to a stock exchange be withdrawn in the interest of the trade or in the public interest, the recognition granted to such stock exchange stands withdrawn.
3. And whereas the Securities and Exchange Board of India vide Order dated May 10, 2022, withdrew the recognition granted to the Indian Commodity Exchange Limited and the same was notified in the Official Gazette on May 18, 2022 bearing number SEBI/LAD-NRO/GN/2022/86. The Order dated May 10, 2022 was challenged before the Securities Appellate Tribunal which vide Order dated June 13, 2022 set aside the SEBI Order dated May 10, 2022 and the Notification dated May 18, 2022 withdrawing the recognition of the Indian Commodity Exchange Limited, subject to the conditions mentioned in the Order dated June 13, 2022.
5. Pursuant to Order dated June 13, 2022, Indian Commodity Exchange Limited vide letter dated February 22, 2023 requested the Securities and Exchange Board of India to relax certain regulatory provisions or the letter may be considered as voluntary surrender of the recognition granted to the Indian Commodity Exchange Limited.
6. Accordingly, vide an Order dated December 10, 2024, the Securities and Exchange Board of India permitted the exit of the Indian Commodity Exchange Limited as a stock exchange and the consequent withdrawal of recognition granted to it, subject to certain directions contained therein. The Order shall come into force on the date of the Notification of withdrawal of recognition granted to the Indian Commodity Exchange Limited in the Official Gazette.
7. Therefore, in exercise of the powers conferred under sub-section (1) of section 5 of the Securities Contracts (Regulation) Act, 1956, the Securities and Exchange Board of India hereby notifies that, the recognition granted to the Indian Commodity Exchange Limited stands withdrawn with effect from the date of publication of this Notification in the Official Gazette.
MADHABI PURI BUCH, Chairperson
[ADVT.-III/4/Exty./850/2024-25]
