The Indian Commodity Exchange (ICEX), promoted by public sector MMTC Ltd and Indiabulls Financial Services, has got recognition from the commodity market regulator, the Forward Markets Commission (FMC). FMC Chairman B C Khatua confirmed this.
The FMC had withheld the recognition on the ground that 10 per cent equity divestment to the United Stock Exchange (USE) was not in line with the regulatory guidelines. After this, ICEX divested 5 per cent each to IDFC and Krishak Bharati Cooperative Ltd last month. In August, the FMC asked the exchange, which got recognition from the commerce ministry over a year ago, to offer 10 per cent equity of USE and other partners and re-submit the application by September-end.
“Yes, we granted recognition to the ICEX today,” Khatua said. He said the launch of trading would depend on the exchange’s preparedness level. He said the FMC would take a week to 10 days to issue identification numbers to all 100 members that the ICEX claimed to have registered with it so far.
Ajit Mittal, MD and CEO of ICEX, said another 100 members were being registered. With a reasonable membership base of 200, we would be able to start trading in 10 commodities by the first week of November, said Mittal. “That is a reasonable time,” said Khatua.
The ICEX plans to soon submit contract details for 10 commodities. From bullion, it has picked up gold and silver while copper, lead and zinc have been chosen from the base metals section.
