Sebi withdraws recognition to Indian Commodity Exchange, paves way for ICEX to exit as an exchange

ICEX had been granted recognition as a commodity derivatives exchange in 2009.

Capital market regulator Sebi has withdrawn the recognition granted to Indian Commodity Exchange (ICEX), allowing the entity to exit as a stock exchange, press statement issued on January 2 said.

In 2022, Sebi had withdrawn the recognition granted to ICEX over 'non-compliance with minimum networth requirement'. The ICEX management had tried to raise funds, but the shareholding norms for exchanges allow maximum shareholding up to 5 percent. This clause, according to ICEX, made the proposition 'unattractive for the new investors'.

In 2022, ICEX had filed an appeal before the Securities Appellate Tribunal (SAT) against SEBI's order. The tribunal, in June 2022, set aside market regulator's order subject to certain conditions requiring ICEX to raise requisite funds and completes all compliances.

ICEX, however, failed to do so, since provisions did not allow investors to hold more than 5 percent stake in a recognised stock exchange. SEBI, thus accepted ICEX's request for exit, after the exchange in May 2023 submitted resolution by shareholders approving voluntary surrender of recognition granted to ICEX.

ICEX has already been informed to change its name and not use 'exchange' or any other variant if it intends to continue as a corporate entity. ICEX had been granted recognition as a commodity derivatives exchange way back in 2009.