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Exchange Limited as an ‘association’ in terms of section 6 of the Forward Contracts (Regulation) Act, 1952 (since repealed).
Section 28A(1) 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 recognized under the Forward Contracts (Regulation) Act, 1952 were deemed to be recognized stock exchanges under the Securities Contracts (Regulation) Act, 1956. Accordingly, the Indian Commodity Exchange Limited became a deemed recognized stock exchange under the Securities Contracts (Regulation) Act, 1956.
While Section 28A(1) 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 recognized under the Forward Contracts (Regulation) Act, 1952 were deemed to be recognized stock exchanges under the Securities Contracts (Regulation) Act, 1956. Accordingly, the Indian Commodity Exchange Limited became a deemed recognized stock exchange under the Securities Contracts (Regulation) Act, 1956.
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 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.
Finally, 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.
Therefore, in exercise of the powers conferred under Section 5(1) 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.
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