Sep 12, 2013, 05.42 PM IST
SEBI has extended the license of MCX-SX for one year (when it comes up for renewal on September 16, 2013), subject to conditions. The market regulator has moved to secure the governance structure of MCX-SX.
Sebi has extended the license of MCX-SX for one year (when it comes up for renewal on September 16, 2013), subject to conditions. The market regulator has moved to secure the governance structure of MCX-SX. It wants the stock exchange to form a committee comprising of two public interest directors and three nominees from the institutional investors. The committee will oversee various functions of the exchange.
MCX-SX is promoted by Financial Technologies Group, which also runs spot commodity exchange National Spot Exchange Limited (NSEL), which has been engulfed in a crisis when it stopped trading on all contracts on July 31 following government directives. It raised concerns about the possible default of Rs. 5,500 crore to investors.
MCX-SX had got a licence from Sebi to operate as a stock exchange in September last year and this permit was about to expire on September 15, 2013.
While Sebi has decided to renew its licence despite continuing troubles at NSEL, which has defaulted on at least four payments so far, the regulator had asked MCX-SX to work towards strengthening its governance practices.
FT closed at Rs 217.40, up Rs 33.55, or 18.25 percent while MCX-SX ended at Rs 482.25, up Rs 22.50, or 4.89 percent on the BSE.
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