SEBI withdraws ICEX recognition and approves its voluntary exit from the exchange business

On Friday, December 27, the Securities and Exchange Board of India (SEBI) officially announced the withdrawal of recognition granted to the Indian Commodity Exchange Ltd (ICEX), marking its exit from the exchange business. This decision follows SEBI’s approval for ICEX to exit the exchange space, which had been under suspension for over two years. The move came after ICEX met the required regulatory criteria. SEBI’s circular stated, “The recognition granted to the Indian Commodity Exchange Ltd stands withdrawn, effective from the publication of this notification in the official gazette.”

The withdrawal came after ICEX met all necessary regulatory requirements. SEBI’s circular stated, “The recognition granted to the Indian Commodity Exchange Ltd stands withdrawn, effective from the date of publication of this notification in the official gazette.”

SEBI’s exit order reviewed ICEX’s valuation report, compliance submissions, and undertakings. The regulator also directed ICEX to fulfill its tax obligations under the Income Tax Act, 1961, change its name to remove any reference to “stock exchange,” and maintain a database of all transactions from previous years.

ICEX declared all known liabilities and assured SEBI that no undisclosed third-party liabilities existed. The commodity exchange also took full responsibility for any future financial claims that might arise. As a result, SEBI granted approval for ICEX’s exit from the stock exchange business and the withdrawal of its recognition.

ICEX, based in Surat, Gujarat, was permanently recognized in 2009 under the Forward Contracts (Regulation) Act, 1952. After the merger of the Forward Markets Commission (FMC) with SEBI in 2015, ICEX became a recognized stock exchange under the Securities Contracts (Regulation) Act, 1956. However, in May 2022, SEBI derecognized ICEX due to its failure to meet minimum net worth requirements, infrastructure deficiencies, and inspection findings.