Market regulator Sebi has given final nod to Indian Commodity Exchange (ICEX), anchored by Reliance Capital, to recommence trading operations. The exchange said it will restart trading operations by the end of next month, after a gap of three years as the bourse has complied with all Sebi mandated norms. “We are grateful to Sebi for granting the final approval to ICEX for re-commencement of trading operations. With all requisite approvals in place, ICEX is poised to go live by end-August, 2017,” ICEX Managing Director and CEO Sanjit Prasad said in a statement.
ICEX, a screen-based online derivatives exchange for commodities, has already received approval from Sebi for the commencement of business and trading operations for Diamond. It has applied for crude and brent oil contracts. Prasad said that the exchange has all necessary infrastructure to handle deposits, grading and sealing, vaulting and deliveries of diamonds as part of its preparation to launch the diamond contracts.
Prior to launch, ICEX will now be stepping up enrolment and training of members and conducting mock trials, he added. Reliance Capital, part of Anil Ambani-led Reliance Group, is the largest investor in the exchange. Recently, ICEX announced that National Multi Commodity Exchange (NMCE) will merge with itself.
The merged entity will have prominent shareholders from both exchanges including MMTC, Indian Potash, Krishak Bharti Cooperative (Kribhco), IDFC Bank, Indiabulls Housing Finance, Reliance Capital, Bajaj Holdings, Central Warehousing Corporation, Punjab National Bank and Gujarat Agro Industries.
ICEX would rival Multi-Commodity Exchange (MCX), the only listed commodity bourse in the country. The other commodity bourse NCDEX (National Commodity and Derivatives Exchange) mostly focuses on agri commodities.