SEBI Gives Green Light for ICEX's Exit from Exchange Sphere

The Indian Commodity Exchange (ICEX) has been allowed by SEBI to exit as a stock exchange after fulfilling regulatory requirements and addressing tax obligations. Initially derecognized due to non-compliance, ICEX's efforts to restore recognition were hindered, leading to a voluntary surrender of its status.

On Tuesday, the Securities and Exchange Board of India (SEBI) permitted the Indian Commodity Exchange (ICEX) to exit the exchange market after its recognition was withdrawn over two years ago. The exchange met all necessary regulatory standards to achieve this.

ICEX, a Surat-based commodity exchange, complied with SEBI's directives, adhering to tax obligations and other conditions. It had initially been derecognized due to infrastructural deficiencies and failure to meet the minimum net-worth requirement. SEBI also reviewed ICEX's reports and undertakings before allowing this exit.

Forced to relinquish its status, ICEX faced difficulties in raising funds under SEBI's 5% shareholding cap, leading to its voluntary surrender. The exit process will be completed upon publication in the gazette, marking ICEX's official departure from the market.

(With inputs from agencies.)