SEBI has renewed the recognition of embattled MCX Stock Exchange for a period of one year.
The capital market regulator’s recognition will be valid till September 15, 2015, and subject to the exchange complying with conditions prescribed by SEBI from time-to-time.
SEBI has asked the exchange to build its net worth (undisputed) to the level as prescribed in the regulations within a period of three months from the date of renewal of recognition.
The exchange recently cancelled the warrants held by the promoter Financial Technologies to increase its net worth. The move has come under dispute.
Further, MCX SX has to submit a business plan to satisfy the regulator about its long-term sustainability.
The exchange will not be allowed to introduce any new contracts till its net worth criteria is met, said SEBI.
MCX-SX has been told to comply with the SEBI’s directions when dealing with people declared not ‘fit and proper’.
It has to take immediate steps to rectify the deficiencies pointed out in the systems audit and special audit besides ensuring all shareholders compliance.