The Securities and Exchange Board of India (SEBI) has renewed the recognition of Multi Commodity Exchange Clearing Corporation Limited (MCXCCL) for a three-year term, from July 31, 2025, to July 30, 2028.Â
The move comes under Regulation 12 of the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018, and is pursuant to Section 4 read with sub-section (4) of Section 8A of the Securities Contracts (Regulation) Act, 1956.
SEBI, after reviewing MCXCCL’s application, confirmed that the renewal was in the interest of trade, the securities market, and the public at large. The renewal is conditional on continued compliance with SEBI’s regulatory framework and any future directives.
Key Implications of the Renewal:
1. Market Continuity and Confidence
The renewal ensures uninterrupted functioning of MCXCCL, which is critical for clearing and settlement of trades on the Multi Commodity Exchange (MCX)—India’s premier commodity derivatives platform. This strengthens market confidence, especially for participants trading in energy, metals, and agri-commodities.
2. Stability in the Commodities Ecosystem
As a clearing corporation, MCXCCL manages counterparty risk, facilitates margining, and guarantees settlement. The continued recognition assures risk containment and systemic stability, a crucial factor amidst volatile global commodity prices.
3. Foreign and Institutional Participation
A stable and SEBI-recognized clearing ecosystem encourages greater participation from foreign and institutional investors, many of whom are mandated to transact only through recognized and regulated clearing corporations. This could lead to increased volumes and enhanced liquidity.
4. Policy Alignment with IFSC and Interoperability
The move aligns with India’s broader financial market reforms, including the interoperability framework among clearing corporations and the push for GIFT City IFSC integration. A strong domestic clearing mechanism like MCXCCL ensures resilience and competitiveness on the global stage.
5. Enhanced Surveillance and Regulatory Oversight
Renewal with conditions implies SEBI’s increasing focus on compliance, transparency, and real-time risk monitoring. MCXCCL will remain under tight scrutiny to implement future enhancements in surveillance, cybersecurity, and settlement efficiency.
Notification Details
Date: 14th July, 2025
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Mariya is the Senior Editor at Juris Hour. She has 5+ years of experience on covering tax litigation stories from the Supreme Court, High Courts and various tribunals including CESTAT, ITAT, NCLAT, NCLT, etc. Mariya graduated from MLSU Law College, Udaipur (Raj.) with B.A.LL.B. and also holds an LL.M. She started as a freelance tax reporter in the leading online legal news companies like LiveLaw & Taxscan.
