SEBI asks MCX to provide detailed comments on the issues raised by CFMA

The Securities and Exchange Board of India (SEBI) has asked MCX to furnish detailed comments on the issues raised by the regulator in the letter dated September 27. The SEBI had asked MCX to keep the proposed commodity derivatives platform in abeyance. 

“SEBI has also advised MCX and MCXCCL to furnish detailed comments on the issues raised in the letter dated September 27, 2023 from Chennai Financial Markets and Accountability along with supporting documents by October 03, 2023,” said MCX in an additional filing on Friday. 

On Thursday, SEBI asked the company to put the proposed go-live of its new commodity derivatives platform planned for next week, that sent the shares crashing. 

Shares of MCX slipped 9 per cent to Rs 1914.60 in early trade on Friday after the SEBI suspension. The stock had hit an all-time high of Rs 2119.60 on Thursday. It had gained 16 per cent in the last five sessions ahead of the planned launch on October 3.

MCX had stated earlier this week that its commodity derivatives platform would go live on October 3, which comes after several delays. SEBI said that it will discuss the platform in its technical advisory committee meeting.

SEBI’s suspension comes after investor group Chennai Financial Markets and Accountability (CFMA) asked it to ensure that MCX had required technical support and a public interest litigation was filed in the Madras High Court in December 2022.

SEBI informed MCX that CFMA forwarded a letter dated September 27 about the new platform. Since it involves "technical issues," it will take up the matter in its meeting, MCX had stated in a filing.

Also read: SEBI asks MCX to keep implementation of new Commodity Derivatives Platform in abeyance, shares drop 8%

Also read: MCX shares slip 9% as SEBI delays launch of new technology platform