Sebi order on CFMA plea to delay MCX shift to TCS

Sebi direction which followed complaint from Chennai body sparks volatility in MCX shares

- Ram Sahgal

The Multi Commodity Exchange of India Ltd (MCX) stock witnessed significant volatility on Friday after the Securities and Exchange Board of India (Sebi) directed it to postpone the planned migration to a new trading platform on 3 October, in response to a petition filed by the Chennai Financial Markets and Accountability (CFMA) before the Madras high court.

MCX said in an exchange filing that it had received a Sebi-forwarded letter on 27 September from CFMA regarding its migration to the new commodity derivative platform (CDP). “It may be noted that writ petitions filed by CFMA on CDP is pending in the Madras high court for disposal," it said in the filing. “The regulator informed that since the matter involves technical issues, the same would be discussed in the Sebi Technical Advisory Committee meeting, which will be held shortly. Meanwhile, Sebi advised the exchange to keep the proposed Go-Live of CDP in abeyance," MCX added.