CHENNAI: SEBI on Monday said it has allowed Universal Commodity Exchange Limited (UCX) to exit the business.
UCX, which was granted recognition as a multi-commodity exchange in 2012, halted trading on July 16, 2014 due to a decline in trading volumes.
"The board of the exchange 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 has not formulated any plan for the purpose of revival," said SEBI in its order.
The net worth of the exchange had been completely eroded, observed SEBI. "After the death of the exchange's promoter Ketan Sheth, exchange officials and board members have resigned. In view of the same, the entire exit proceedings were conducted in coordination with the representatives of institutional shareholders of the exchange viz NABARD, IFFCO, IDBI Bank Ltd and Rural Electrification Corp," said SEBI.
UCX is the sixth commodity derivatives exchange to exit after the merger of Forward Markets Commission (FMC) with SEBI.