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Date: 26-Dec-2024 Category: Extra Ordinary State: Union Government Country: India

Whereas the erstwhile Forward Market Commission, vide Notification dated October 9, 2009 bearing number

Issued by Securities and Exchange Board of India · Not Applicable

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Executive Summary & Key Takeaways

What it means

  • This gazette notification announces the withdrawal of recognition granted to the Indian Commodity Exchange Limited (ICEX) as a stock exchange.
  • The withdrawal is effective from the date of publication of this notification in the official gazette.
  • This action follows a series of events, including a previous withdrawal of recognition by SEBI, a challenge by ICEX at the Securities Appellate Tribunal (SAT), and a subsequent request from ICEX to either relax certain regulations or consider their request as a voluntary surrender of recognition.

Key Changes

  • The Securities and Exchange Board of India (SEBI) has withdrawn the recognition of Indian Commodity Exchange Limited (ICEX) as a stock exchange.
  • This withdrawal is based on Section 5(1) of the Securities Contracts (Regulation) Act, 1956.
  • ICEX was initially recognized as an 'association' under the Forward Contracts (Regulation) Act, 1952, which was later repealed.
  • Upon the merger of the Forward Market Commission with SEBI, ICEX was deemed to be a recognized stock exchange under the Securities Contracts (Regulation) Act, 1956.
  • SEBI had previously withdrawn ICEX's recognition on May 10, 2022, which was then set aside by the Securities Appellate Tribunal (SAT) on June 13, 2022.
  • ICEX requested SEBI to relax certain regulations or treat their request as a voluntary surrender of recognition, which led to SEBI permitting the exit of ICEX as a stock exchange on December 10, 2024.
  • The notification is effective from the date of its publication in the official gazette.

Impact Analysis

Impact on Indian Commodity Exchange Limited (ICEX)

  • ICEX will have to manage the transition and ensure smooth closure of its operations as a stock exchange.

Impact on Traders and Investors

  • Investors who had investments through ICEX may need to take steps to manage their positions.

Impact on SEBI

  • SEBI will need to address any queries or concerns from stakeholders regarding the withdrawal of recognition.

Suggested Action Items

  • SEBI should inform the public about the withdrawal of recognition and the implications for the market.

Key Entities Referenced

Indian Commodity Exchange Limited (ICEX): A commodity exchange that was initially recognized under the Forward Contracts (Regulation) Act, 1952 and later deemed a stock exchange under the Securities Contracts (Regulation) Act, 1956. Its recognition as a stock exchange has been withdrawn. Securities and Exchange Board of India (SEBI): The regulatory body responsible for overseeing the securities market in India. SEBI has withdrawn the recognition of ICEX as a stock exchange. Forward Contracts (Regulation) Act, 1952: An act that regulated forward contracts. This act has been repealed, but it was the basis for ICEX's initial recognition as an association. Securities Contracts (Regulation) Act, 1956: An act that regulates securities contracts and stock exchanges in India. ICEX was deemed to be a recognized stock exchange under this act. Securities Appellate Tribunal (SAT): A tribunal that hears appeals against orders passed by SEBI. SAT had previously set aside SEBI's order to withdraw ICEX's recognition. Ministry of Finance: The ministry that issued the notification on September 13, 1994, which is referenced in the gazette and provides the basis for SEBI's power to withdraw recognition of a stock exchange.
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-एम.एच.-अ.-26122024-259641 xxxGIDHxxx CG-MH-E-26122024-259641 xxxGIDExxx असाधारण EXTRAORDINARY भाग III—खण् ड 4 PART III—Section 4 प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 1033] िई दिल्ली, बहृ स्ट्प जतिार, दिसम्ब र 26, 2024/पौष 5, 1946 No. 1033] NEW DELHI, THURSDAY, DECEMBER 26, 2024/PAUSHA 5, 1946 भारतीय प्रजतभजू त और जिजिमय बोडड अजधसचू िा म ंबई, 24 दिसम् बर, 2024 स.ं सबे ी/एलएडी-एिआरओ/िीएि/2024/222.—िायिा बािार आयोग (िो पहल े हुआ करता था) द्वारा, तारीख 9 अक् तूबर, 2009 की अजधसूचिा स.ं का.आ. 2565 (अ) के माध्यम स,े अजिम संजििा (जिजियमि) अजधजियम, 1952 [फॉरिडड कॉण्रैक््स (रेग्यूलेिि) एक्ट, 1952] (िो जिरस्ट्त हो च का ह)ै की धारा 6 के अि सार इंजडयि कमोजडटी एक्सचेंि जलजमटेड को एक ‘संघ’ (असोजसएिि) के रूप म ेंमान्यता प्रिाि की गई थी । 2. और अजिम संजििा (जिजियमि) अजधजियम, 1952 की धारा 28क (28ए) की उप-धारा (1) म ें यह प्रािधाि था दक िायिा बािार आयोग का भारतीय प्रजतभूजत और जिजिमय बोडड (सेबी) म ेंजिलय हो िाि ेके बाि, अजिम संजििा (जिजियमि) अजधजियम, 1952 के तहत मान्यताप्राप्त सभी सघं ों (असोजसएिि) को प्रजतभूजत संजििा (जिजियमि) अजधजियम, 1956 [जसक्यूररटीज़ कॉण्रैक््स (रेग्यलू ेिि) एक्ट, 1956] के तहत मान्यताप्राप्त स्ट्टॉक एक्सचेंि समझा िाए । तिि सार, इंजडयि कमोजडटी एक्सचेंि जलजमटेड प्रजतभूजत संजििा (जिजियमि) अजधजियम, 1956 के तहत मान्यताप्राप्त स्ट्टॉक एक्सचेंि बि गया । 3. और जित्त मंत्रालय द्वारा िारी की गई तारीख 13 जसतम्बर, 1994 की अजधसूचिा स.ं का.आ. 672(अ) के साथ परित प्रजतभूजत संजििा (जिजियमि) अजधजियम, 1956 की धारा 5 की उप-धारा (1) म ेंयह प्रािधाि ह ैदक िहााँ सेबी की यह राय 8336 GI/2024 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4] हो दक स्ट्टॉक एक्सचेंि को प्रिाि की गई मान्यता रेडडगं के जहत म ें या लोक जहत (ििजहत) म ें िापस ले ली िािी चाजहए, िहा ाँ ऐसे स्ट्टॉक एक्सचेंि को प्रिाि की गई मान्यता िापस ल ेली िाए । 4. और सेबी द्वारा तारीख 10 मई, 2022 के आिेि के माध्यम से, इंजडयि कमोजडटी एक्सचेंि जलजमटेड को प्रिाि की गई मान्यता िापस ल े ली गई थी, और इस संबंध म ें रािपत्र म ें 18 मई, 2022 को एक अजधसूचिा (स.ं सेबी/एल.ए.डी.- एि.आर.ओ./िी.एि./2022/86) िारी की गई थी । तारीख 10 मई, 2022 के आििे को प्रजतभूजत अपीलीय न्यायाजधकरण (सैट) के समक्ष च िौती िी गई थी, और दफर सैट ि े 13 ििू , 2022 को आििे िारी करके सेबी के तारीख 10 मई, 2022 के आिेि और तारीख 18 मई, 2022 की अजधसूचिा (जििके माध्यम स ेइंजडयि कमोजडटी एक्सचेंि जलजमटेड को प्रिाि की गई मान्यता िापस ले ली गई थी) को खाररि कर दिया था, हालााँदक तारीख 13 िूि, 2022 के आिेि में िी हुई ितों का पालि करिे को कहा गया था । 5. तारीख 13 ििू , 2022 का आिेि िारी होि ेके बाि, इंजडयि कमोजडटी एक्सचेंि जलजमटेड िे 22 फरिरी, 2023 को पत्र जलखकर सेबी से यह अिर ोध दकया था दक या तो उन्ह ें जिजियमों के क छ प्रािधािों के पालि से छूट प्रिाि कर िी िाए या दफर उिके इस पत्र को ही मान्यता (िो इंजडयि कमोजडटी एक्सचेंि जलजमटेड को जमली हुई ह)ै का स्ट्िैजछछक अभ्यपडण (सरंडर) माि जलया िाए । 6. तिि सार, सेबी िे 10 दिसम्बर, 2024 को आिेि िारी करके, इंजडयि कमोजडटी एक्सचेंि जलजमटेड को बाहर जिकलि े (एजक्ज़ट) की अि मजत िे िी ह ैऔर स्ट्टॉक एक्सचेंि के रूप में उसे प्रिाि की गई मान्यता िापस ले ली ह,ै बिते दक उस आििे में दिए हुए जिििे ों का पालि दकया िाए । उपरोक्त आिेि इंजडयि कमोजडटी एक्सचेंि जलजमटेड को प्रिाि की गई मान्यता िापस लेिे के संबंध म ेंरािपत्र में अजधसूचिा िारी दकए िािे की तारीख से ही लाग ूहोगा । 7. इसीजलए, प्रजतभूजत संजििा (जिजियमि) अजधजियम, 1956 की धारा 5 की उप-धारा (1) के तहत प्रिाि की गई िजक्तयों का प्रयोग करत े हुए, सेबी एतद्द्वारा यह अजधसूजचत करता ह ै दक इंजडयि कमोजडटी एक्सचिें जलजमटेड को प्रिाि की गई मान्यता रािपत्र म ेंइस अजधसूचिा के प्रकाजित होिे की तारीख से िापस ली िाती ह ै। माधबी प री ब च, अध्यक्ष [जिज्ञापि-III/4/असा./850/2024-25] SECURITIES AND EXCHANGE BOARD OF INDIA NOTIFICATION Mumbai, the 24th December, 2024 No. SEBI/LAD-NRO/GN/2024/222.—Whereas the erstwhile Forward Market Commission, vide Notification dated October 9, 2009 bearing number S.O. No. 2565 (E), granted recognition to the Indian Commodity Exchange Limited as an ‘association’ in terms of section 6 of the Forward Contracts (Regulation) Act, 1952 (since repealed). 2. And whereas sub-section (1) of section 28A of the Forward Contracts (Regulation) Act, 1952 provided that pursuant to the merger of the Forward Market Commission with the Securities and Exchange Board of India, all the associations recognised under the Forward Contracts (Regulation) Act, 1952 were deemed to be recognised stock exchanges under the Securities Contracts (Regulation) Act, 1956. Accordingly, the Indian Commodity Exchange Limited became a deemed recognised stock exchange under the Securities Contracts (Regulation) Act, 1956. 3. And whereas sub-section (1) of section 5 of the Securities Contracts (Regulation) Act, 1956 read with the Notification dated September 13, 1994 bearing number S.O. 672 (E) issued by the Ministry of Finance provides that where the Securities and Exchange Board of India is of the opinion that the recognition granted to a stock exchange be withdrawn in the interest of the trade or in the public interest, the recognition granted to such stock exchange stands withdrawn. 4. And whereas the Securities and Exchange Board of India vide Order dated May 10, 2022, withdrew the recognition granted to the Indian Commodity Exchange Limited and the same was notified in the Official Gazette on May 18, 2022 bearing number SEBI/LAD-NRO/GN/2022/86. The Order dated May 10, 2022 was challenged before the Securities[भाग III—खण् ड 4] भारत का रािपत्र : असाधारण 3 Appellate Tribunal which vide Order dated June 13, 2022 set aside the SEBI Order dated May 10, 2022 and the Notification dated May 18, 2022 withdrawing the recognition of the Indian Commodity Exchange Limited, subject to the conditions mentioned in the Order dated June 13, 2022. 5. Pursuant to Order dated June 13, 2022, Indian Commodity Exchange Limited vide letter dated February 22, 2023 requested the Securities and Exchange Board of India to relax certain regulatory provisions or the letter may be considered as voluntary surrender of the recognition granted to the Indian Commodity Exchange Limited. 6. Accordingly, vide an Order dated December 10, 2024, the Securities and Exchange Board of India permitted the exit of the Indian Commodity Exchange Limited as a stock exchange and the consequent withdrawal of recognition granted to it, subject to certain directions contained therein. The Order shall come into force on the date of the Notification of withdrawal of recognition granted to the Indian Commodity Exchange Limited in the Official Gazette. 7. Therefore, 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 hereby notifies that, the recognition granted to the Indian Commodity Exchange Limited stands withdrawn with effect from the date of publication of this Notification in the Official Gazette. MADHABI PURI BUCH, Chairperson [ADVT.-III/4/Exty./850/2024-25] Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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