Markets regulator Securities and Exchange Board of India on Thursday said it has withdrawn the recognition granted to the Indian Commodity Exchange Ltd.
"The Securities and Exchange Board of India has withdrawn the recognition granted to the Indian Commodity Exchange Limited, vide notification dated May 18, 2022," according to a press release issued by the regulator.
The withdrawal of recognition follows an order passed by SEBI on May 10 after finding the bourse non-compliant on several grounds like net worth and infrastructural requirements.
Consequent to the withdrawal, 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.
Besides, it has been asked to set aside sufficient funds to provide for settlement of any claims, clear the dues outstanding to SEBI and pay SEBI registration fees as per brokers' norm by its trading members.
Further, ICEX has been directed to refrain from using the expression 'stock exchange' or any variant in its name or in its subsidiary company's name.
ICEX was recognised as an exchange under forward contracts through a notification issued in October 2009 by the central government on a permanent basis.
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