MCX slumps 6% as SEBI delays launch of new tech platform

The planned migration to this platform, which was expected to take place by October 3, is now unlikely to occur within the initial projected timeframe.

Multi Commodity Exchange of India (MCX), the country’s largest commodity derivatives exchange, is facing delays in shifting to its new technology platform. The planned migration to this platform, which was expected to take place by October 3, is now unlikely to occur within the initial projected timeframe, reports CNBC Awaaz.

The exact reasons for the delay or a new timeline for the migration have not been specified in the information available.

Moneycontrol could not independently verify the report.

MCX has announced that the Securities and Exchange Board of India (SEBI) has recommended a temporary suspension of the planned launch of CDP, which stands for Commodity Derivatives Platform. As a result, the launch has been put on hold, and MCX will continue conducting CDP mock tests until further directives are received from the market regulator, according to a press release shared by MCX.

The market regulator has also mentioned that since the issue involves technical aspects, it will be discussed in an upcoming meeting of the SEBI Technical Advisory Committee.

Sebi has shared a letter from Chennai Financial Markets and Accountability (CFMA) dated September 27 with MCX, regarding CDP. It is important to know that CFMA had filed legal petitions related to CDP, which is awaiting a decision from the Madras High Court.

(This is a developing story. More details are awaited.)