The Securities and Exchange Board of India (Sebi), in a circular, also said national commodity bourses will have to continuously meet the turnover criteria of Rs 1,000 crore per annum.
Regional commodity exchange will have to ensure that they have at least five per cent of the nation-wide market share of the commodity, which is principally traded on their platform.
In case, these exchanges fail to meet the criteria for two consecutive years, they will be liable to exit.
Further, such exchange would resume trading operations only after receiving prior approval from Sebi.
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In case any commodity exchange proposes to surrender its recognition voluntarily, the concerned bourse would not alienate any of its assets without taking prior approval of Sebi.
However, the concerned exchange would be permitted to distribute its assets subject to certain conditions issued by Sebi, Government, or any other statutory authority, from time to time.
The quantum of assets for distribution will be available after payment of statutory dues including income tax, transfer of funds, refund of deposit to stock brokers and clearing members.
Besides, the concerned exchange will have to pay dues to outstanding to Sebi as well as the annual regulatory fee.
In case any commodity exchange, after de-recognition, continues as corporate entity under the Companies Act, it would not use the expression 'stock exchange', 'commodity derivative exchange' or 'exchange' or any variant in its name or in its subsidiaries name.
The circular has come into force with immediate effect.