Multi Commodity Exchange of India (MCX) on October 8 said that it has received the approval from SEBI tech panel to launch new web-based commodity derivatives platform (CPD) after several delays with the market regulator earlier.
"Subsequently, SEBI Technical Advisory Committee has recommended that MCX and MCXCCL may Go-Live with the CDP and to intimate SEBI regarding the proposed date for Go Live," MCX said in a regulatory filing.
This development was first reported by CNBC-TV18 on October 6 citing sources.
Over the past month, the stock of the Mumbai-based commodity exchange has jumped 18 percent against a 1.4 percent rise in the benchmark Sensex. On October 6, the scrip was up 5.06 percent to close at Rs 2,047.95 apiece.
The approval comes after the Securities and Exchange Board of India (SEBI) had on September 29 asked the company to put on hold the proposed go-live of its new commodity derivatives platform planned for first week of October.
However, SEBI has now withdrawn its ‘abeyance’ order and asked the company to propose the ‘go-live’ date on new platform.
MCX had said earlier this week that its commodity derivatives platform would go live on October 3.
During that time, MCX said in a statement that SEBI will discuss the platform in its technical advisory committee meeting to be held shortly.
SEBI's intervention comes after investor group Chennai Financial Markets and Accountability (CFMA) asked it to ensure that MCX had required technical support and a public interest litigation was filed in the Madras High Court in December 2022.
Meanwhile, in a circular dated September 27, the company had said that the new CDP platform would interface with members for providing risk management, collateral management, and settlement of related services to members and market participants.
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