Sebi order on CFMA plea to delay MCX shift to TCS

livemint.com:

Mumbai: 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. The MCX stock fell 8.7% to ₹1,913.25 during the first hour of trade, but gradually recovered from the lows to hit a record high of ₹2,139.95 during the last hour of trade, and finally ended 2.2% lower at ₹2,049.70.

Sebi has advised MCX and its clearing corporation Multi Commodity Exchange Clearing Corporation Ltd (MCXCCL) to submit detailed comments on the issues raised by CFMA along with supporting documents by 3 October, which will be evaluated by its technical advisory committee. An MCX official said he wasn’t aware of the technical issues raised by CFMA against the adoption of the Tata Consultancy Services Ltd (TCS) platform.