Sebi allows Bombay Commodity Exchange to exit futures biz

Sebi asked the exchange to drop "Exchange" from its name and avoid its use in any variant

The Securities and Exchange Board of India (Sebi) has allowed Bombay Commodity Exchange (BCEL) to exit the commodity futures business with immediate effect. In a directive on Friday, Sebi also asked the exchange to drop “Exchange”, from its name and avoid its use in any variant.

The stock markets regulator had in February told BCEL to abide by the exit policy in view of suspension of trading for more than 12 months. Following this, the exchange deposited the regulatory fee and other payments. This included payment towards the investor protection fund for fulfilling the exit policy.

“We have over 300 members. Sebi has not issued any order so far to us for changing the name,” said BCEL president Mahendra Chehdda. He, however, declined to divulge details.

Primarily set up as an associate of oilseed traders in Navi Mumbai, BCEL received permanent recognition to trade in commodities from the erstwhile regulator, the Forward Markets Commission (FMC), and started trading in castor oilseed. The volume of trade during 2013-14 stood at 14,000 tonnes in castor seed, which was the only commodity being traded. However, since December 13, 2013, there has been no trading.

This is the first commodity exchange losing recognition since Sebi took over the regulation of commodities from FMC in September 2015.