The Securities and Exchange Board of India (SEBI) on has withdrawn the recognition granted to the Indian Commodity Exchange Limited (ICEX).
“The withdrawal of recognition was due to non-compliance with net-worth requirement, SEBI circulars, SEBI inspection observations and infrastructural requirements as prescribed under Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018,” the market regulator said in an official press release.
ICEX has been directed to transfer the money available in the Investor Protection Fund and Investor Services Fund of ICEX to SEBI’s Investor Protection and Education Fund.
Moreover, ICEX has to set aside sufficient funds to provide for settlement of any claims; pay the dues outstanding to SEBI and pay SEBI registration fees as per SEBI (Stock Brokers) Regulations, 1992.
SEBI has further directed ICEX to refrain from using the expression ‘stock exchange’ or any variant in its name or in its subsidiary company’s name.