Sebi grants conditional renewal of recognition to MCX-SX for a year

Securities and Exchange Board of India (Sebi) has decided to renew the recognition to MCX-SX for a period of one year commencing on 16 September 2014 and ending on the 15 September 2015, subject to the bourse complying with conditions specified by the regulator from time to time.

While granting renewal of recognition, the market regulator has prescribed that the exchange should build its networth (undisputed) to the level as prescribed in Sebi (SECC) Regulations 2012 within a period of three months from the date of renewal of recognition.

Further, the exchange should submit a business plan to satisfy the regulator about the long term sustainability of the exchange.

The exchange should desist from introducing any new contracts till fulfillment of networth requirement as referred in above to the satisfaction of Sebi.

MCX-SX should comply with the Sebi's directions with regard to entities which have been declared not 'fit and proper' person.

The exchange should take immediate steps to rectify the deficiencies pointed out in the systems audit as well as special audit. It should also take necessary steps for compliance with shareholding requirement by all the shareholders as per Sebi (SECC) Regulations 2012.