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(1) of section 5 of the Securities Contracts (Regulation) Act, 1956, the Securities and Exchange Board of India has withdrawn the recognition granted to the Indian Commodity Exchange Limited,vide notification dated May 18, 2022.
Thewithdrawal of recognition was pursuant to an Orderpassed by ShriV.S. Sundaresan, Executive Director, SEBI on May 10, 2022 for non-compliance withnet-worth requirement, SEBI circulars,SEBI inspection observationsand infrastructural requirements as prescribed underSecurities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018.
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 SEBIInvestor 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 directedICEX to refrain from using the expression ‘stock exchange’ or any variant in its name or in its subsidiary company’s name.
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