SEBI asks MCX to put launch of new platform on hold

Representational image of the Securities and Exchange Board of India (SEBI) headquarters in Mumbai
| Photo Credit: Reuters

Multi Commodity Exchange of India (MCX) on Friday said the country’s markets regulator has asked the company to put on hold the proposed go-live of its new commodity derivatives platform planned for next week.

The Securities and Exchange Board of India (SEBI) will discuss the commodity platform in its technical advisory committee meeting to be held shortly, MCX said in a statement.

The exchange will continue to conduct mock tests on the platform till it gets further directions from SEBI, it added.

Earlier this week, MCX had informed that its new commodity derivatives platform will go live on October 3 after several delays.

SEBI’s intervention comes as Chennai Financial Markets and Accountability (CFMA), an investor group, had asked the market regulator to ensure that MCX had required technical support.

The SEBI had informed MCX that CFMA has forwarded a letter dated Sept. 27 about the new platform and since it involves “technical issues”, it will discuss them in its meeting, as per the exchange filing from MCX.