SEBI Withdraws Abeyance Order Against MCX Commodity Derivatives Platform

Securities and Exchange Board of India has allowed Multi Commodity Exchange of India to go live with its proposed Commodity Derivatives Platform, the company said in an exchange filing on Sunday.

"SEBI has withdrawn its directions to MCX and MCXCCL to keep the proposed Go-Live of CDP in abeyance," the filing read.

Multi Commodity Exchange Clearing Corporation Ltd., or MCXCCL, is a clearing corporation in the commodity derivatives market.

On Sept. 29, the markets regulator had asked MCX to delay the launch of the Commodity Derivatives Platform, which was scheduled to go live by Oct. 3.

The abeyance order came in the light of the fact that the matter involves technical issues and would be taken up by the SEBI Technical Advisory Committee for discussion, MCX had told exchanges last month.

SEBI had asked MCX and MCXCCL to furnish detailed comments on the issues raised by Chennai Financial Markets and Accountability on CDP by Oct. 3.

In the meantime, MCX continued CDP mock tests, awaiting SEBI's permission to go live.

Thereafter, replies of MCX and MCXCCL on the complaint of Chennai Financial Markets and Accountability regarding the new CDP was submitted to SEBI, after following due process.

Subsequently, SEBI Technical Advisory Committee has recommended that MCX and MCXCCL may go live with the CDP and to intimate SEBI regarding the proposed date for the same.