Sebi asks MCX to put launch of new commodity derivative platform on hold

India's Multi Commodity Exchange of India (MCX) said the country's markets regulator has asked the company to put on hold the proposed go-live of its new commodity derivatives platform planned for next week, sending shares crashing on Friday.

MCX shares fell as much as 8.3 per cent, their biggest intra-day percentage drop since June 30, in early trade. They were last down 8 per cent at 1,927 rupees per share.

The Securities and Exchange Board of India (Sebi) will discuss the commodity platform in its technical advisory committee meeting to be held shortly, MCX said in a statement.

The exchange will continue to conduct mock tests on the platform till it gets further directions from Sebi, it added.

Earlier, this week, MCX had informed that its new commodity derivatives platform will go live on Oct. 3 after several delays.

Sebi's intervention comes as Chennai Financial Markets and

Accountability (CFMA), an investor group, had asked the market regulator to ensure that MCX had required technical support.

The Sebi had informed MCX that CFMA has forwarded a letter dated Sept. 27 about the new platform and since it involves "technical issues", it will discuss them in its meeting, as per the exchange filing from MCX.

MCX shares are still up about 24 per cent so far this year, despite Friday's slump.