Sebi Permits Indian Commodity Exchange To Exit Bourse Biz

New Delhi: Markets regulator Sebi on Tuesday allowed the Indian Commodity Exchange (ICEX) to exit the exchange space after its recognition was withdrawn over two years ago.

The move comes after the exchange fulfilled regulatory requirements. Additionally, the regulator has directed ICEX to comply with its tax obligations under the Income Tax Act, 1961; change its name and not to use the expression “stock exchange” and maintain database of all transactions on its platform for the previous years among others.

In an exit order, Sebi said it has reviewed ICEX’s valuation report, compliance submissions and undertakings. The bourses declared all known liabilities and assured Sebi it had no undisclosed third-party liabilities. The exchange also undertook full responsibility for any future financial claims that may arise.

Accordingly, the Securities and Exchange Board of India (Sebi) has permitted “the exit of the ICEX as a stock exchange and thus the consequent withdrawal of recognition granted to ICEX”. ICEX, a commodity exchange based in Surat, Gujarat, was granted permanent recognition in 2009 under the Forward Contracts (Regulation) Act, 1952 (FCRA).