Securities and Exchange Board of India hereby notifies that, the recognition granted to the Indian Commodity Exchange Limited stands withdrawn. Read Relevant Circular and Notification –
Securities and Exchange Board of India
Press Release No. 17/2022
SEBI withdraws Permanent Recognition granted to Indian Commodity Exchange Ltd.
1. 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(1) of section 5 of the Securities Contracts (Regulation) Act, 1956, the Securities and Exchange Board of India has withdrawn the recognition granted to the Indian Commodity Exchange Limited, vide notification dated May 18, 2022.
2. The withdrawal of recognition was pursuant to an Order passed by Shri V.S. Sundaresan, Executive Director, SEBI on May 10, 2022 for noncompliance with net-worth requirement, SEBI circulars, SEBI inspection observations and infrastructural requirements as prescribed under Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018.
3. Consequent to the withdrawal, ICEX was directed to (a) transfer the money available in the Investor Protection Fund and Investor Services Fund of ICEX to SEBI Investor Protection and Education Fund; (b) set aside sufficient funds to provide for settlement of any claims; (c) pay the dues outstanding to SEBI; and (d) pay SEBI registration fees as per SEBI (Stock Brokers) Regulations, 1992 by its trading members. The Order further directed ICEX to refrain from using the expression ‘stock exchange’ or any variant in its name or in its subsidiary company’s name.
Mumbai
May 19, 2022
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SECURITIES AND EXCHANGE BOARD OF INDIA
NOTIFICATION
Mumbai, the 18th May, 2022
No. SEBI/LAD-NRO/GN/2022/86.—Whereas the erstwhile Forward Market Commission, vide notification number S.O. No. 2565 (E) dated 9th October, 2009, notified the Indian Commodity Exchange Limited in terms of section 6 of the Forward Contracts (Regulation) Act, 1952;
2. And whereas sub-section (1) of section 28A of the Forward Contracts (Regulation) Act, 1952 provides 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, 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 number S.O. 672 (E) dated 13th September, 1994 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;
4. 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.
MADHABI PURI BUCH, Chairman
[ADVT.-III/4/Exty./75/2022-23]
