Markets regulator Sebi today allowed the Universal Commodity Exchange (UCX) to discontinue operations as a commodity bourse.
In 2012, UCX was granted recognition as a multi-commodity exchange.
The board of UCX had suspended trading operations with effect from July 16, 2014 in view of the “drastic” decline in trading volume.
Thereafter, the exchange has made no attempts for revival of trading and not formulated any plan for the purpose of its revival, according to a Sebi order.
“I… allow the exit of the Universal Commodity Exchange, as a stock exchange and consequent withdrawal of recognition granted to UCX,” Sebi Whole Time Member Madhabi Puri Buch said.
The regulator has allowed UCX to make an exit after considering all the facts pertaining to UCX as well as the relevant documents, valuation report, submission by the shareholders of UCX.
Buch also noted that all known liabilities as on date have been brought out in the valuation report.
“UCX has substantially complied with all the conditions contained in the Exit Circular, 2016 and shareholders have submitted an undertaking to state that,” Buch said.
“Therefore, I am of the view that it is a fit case to allow exit to UCX in terms of… the Exit Circular, 2016,” she said.
In January 2016, the Securities and Exchange Board of India (Sebi) had issued a circular laying out the mandatory requirements or exit policy for all commodity derivatives exchanges.
According to the circular, if there is no trading operation on the platform of any commodity derivatives exchanges for more than twelve months, then such exchange is liable to exit.
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