In 2022, Sebi had withdrawn the recognition granted to ICEX over 'non-compliance with minimum net-worth requirement'. 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.
The regulator passed the order on December 10
The Securities Appellate Tribunal (SAT) has overturned Sebi's decision to deregister Indian Commodity Exchange Limited (ICEX) as a stock exchange on the condition that it raise the required cash within a year.
ICEX (Indian Commodity Exchange) was recognised as an exchange under forward contracts through a notification issued in October 2009 by the central government on a permanent basis.
Market regulator follows the money trail to check for wrongdoings by Indian Commodity Exchange under Liquidity Enhancement Scheme.
Recently, ICEX received SEBI’s approval for using the MSE’s clearing corporation subsidiary -- Metropolitan Clearing Corporation of India. To complicate matters for MSE, the regulator has ordered a forensic audit of the exchange
The board of directors of both the exchanges will meet this week to formalise the merger.
With this, ICEX will widen its product offerings to its existing product portfolio of diamond derivatives, a statement issued here said.
ICEX had launched the world's first diamond derivatives contracts in August last year with 1-carat futures contracts, and had subsequently added the 50-cents contracts.
SEBI has already started work on the front and has set up a separate department to roll out this measure, which was part of the 2016 HR Khan committee report, on the fast track.
The 50 cents contracts for expiry in February, March and April 2018 are expected to attract more industry players as half carat diamonds are used in jewellery, the exchange said.
ICEX is promoted by a mix of public-private partnership comprising PSUs including MMTC, Indian Potash, Krishak Bharti Cooperative (Kribhco) and IDFC Bank, among others.
ICEX is getting launched on August 28 and this is going to be the first diamond exchange in the world. Watch the interview of Sanjit Prasad, MD & CEO, ICEX with Manisha Gupta on CNBC-TV18. He shared his views and outlook on how easy or difficult is it going to be to trade diamonds on a derivative exchange.
The exchange said it will restart trading operations by the end of next month, after a gap of three years as the bourse has complied with all Sebi mandated norms.
This is the first merger deal in the commodity exchange space and the merged entity will offer the world's first diamond futures contract along with a wide range of contracts, including bullion, oil, rubber and other agri-commodities. Reliance Capital is the largest investor in ICEX and will continue to be the largest shareholder post merger, along with others.
The exchange, where trading has been suspended for nearly three years, said it has completed its rights issue.
Earlier this week, Reliance Capital chairman Anil Ambani had announced that the firm will re-launch its commodity exchange with focus on diamond and crude oil futures. The exchange aims to make diamond futures its flagship product with potential daily turnover of over Rs 6,000 crore.
ICEX, a screen-based on-line derivatives exchange for commodities, said it has already put in place "a strong team, sound technology platform, risk processes and infrastructure in place and will now be seeking necessary regulatory approvals for launching the exchange by June this year".
Shares of MMTC gained 6.5 percent intraday Tuesday post the company has approved the proposal for sale of 10 percent of ICEX equity.
FMC has asked ICEX to submit a business revival plan within a week or it may be asked to shut shop in case of delay in submitting the plan.
FMC, in response to a request made by the leading bourse MCX, has also decided to exempt registration of potato cold storages with the Warehousing Development and Regulatory Authority (WDRA) for the current season to ensure smooth supply and efficient price discovery on the exchange platform.
Since the registration process will take some more time, the Forward Markets Commission (FMC) said it has "decided to extend the time frame till 31st March 2014 for the existing accredited warehouses of the exchanges."
A two-year old ban on iron ore exports from Karnataka which has halved shipments from the world's No. 3 supplier will take centre stage at an industry gathering in Bangalore this week as pressure mounts to lift the restriction.
Indiabulls Financial Services sold 26% stake in ICEX to Reliance Exchangenet, quoting Agencies, reports CNBC-TV18. It touched an intraday high of Rs 184.50 and an intraday low of Rs 175.15. At 09:30 hrs the share was quoting at Rs 182.70, up Rs 9.05, or 5.21%.