1. In exercise of the powers conferred under sub-section (1) of section 5 of the Securities Contracts (Regulation) Act, 1956, the Securities and Exchange Board of India has withdrawn the recognition granted to the Indian Commodity Exchange Limited, vide notification dated May 18, 2022.
2. The withdrawal of recognition was pursuant to an Order passed by Shri V.S. Sundaresan, Executive Director, SEBI on May 10, 2022 for noncompliance 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.
3. Consequent to the withdrawal, ICEX was directed to (a) transfer the money available in the Investor Protection Fund and Investor Services Fund of ICEX to SEBI Investor Protection and Education Fund; (b) set aside sufficient funds to provide for settlement of any claims; (c) pay the dues outstanding to SEBI; and (d) pay SEBI registration fees as per SEBI (Stock Brokers) Regulations, 1992 by its trading members. The Order further directed ICEX to refrain from using the expression ‘stock exchange’ or any variant in its name or in its subsidiary company’s name.