New Delhi, Jan 14 (PTI) Regulator Sebi has allowed IndiaPepper and Spice Trade Association (IPSTA) and RajkotCommodity Exchange (RCX) to cease operations as commodityderivative bourses after they voluntarily decided to exit.
Kochi-based IPSTA had recognition as a commodityderivative exchange in respect of futures trading in pepperwhile that of RCX was for forward trade in castor seedcontracts.
Both entities have been allowed to cease to exist asbourses after they complied with the requirements of exitpolicy for commodity derivatives exchanges, as per twoseparate orders.
There was no trading at IPSTA since April 2016 and in thecase of RCX, trading was discontinued in December 2016.
The boards of the two respective exchanges had resolvedto take formal voluntary exit as recognised commodityexchanges.
Among others, IPSTA had submitted to the Sebi that therewas no trading activity at its platform for more than twelvemonths and that the market of pepper was also not conducive.
In the case of RCX, the watchdog observed that it did nothave the required 5 per cent of the nationwide market share ofcastor seed for two consecutive years -- 2015-16 and 2016-17.
The regulator has also directed them to not use theexpression "exchange" or any of its variant in their names andto avoid any representation of present or past affiliationwith the stock exchanges in all media.
As per Sebi, IPSTA and RCX have "substantially" compliedwith the conditions contained in the exit circular andsubmitted written undertakings that they do not have any thirdparty or undisclosed liabilities in respect of futurestrading. PTI VRN RAMABM.
This is unedited, unformatted feed from the Press Trust of India wire.