As crisis at its erstwhile promoter group continues to cast a shadow, MCX Stock Exchange on Monday got a one-year conditional renewal to function as a bourse and regulator Sebi asked it to submit a long-term sustainable business plan and take other remedial actions.
Besides, the exchange would not be allowed to introduce any new contract till it meets minimum networth requirement of Rs 100 crore, for which it has been given three-months time.
The current recognition of MCX-SX, which was set up by Jignesh Shah-led Financial Technologies group, expired today, but Sebi has now decided to extend it for a period of one year, commencing tomorrow and ending on September 15, 2015.
The renewal is subject to five specific conditions and compliance to other conditions specified by Sebi from time to time, the Securities and Exchange Board of India (Sebi) said in a statement.
"The exchange shall build its networth (undisputed) to the level as prescribed in Sebi (SECC) Regulations 2012 within a period of three months from the date of renewal of recognition. Further, the exchange shall also submit a business plan to satisfy the regulator about the long term sustainability of the exchange," the regulator said.