Markets regulator Sebi has allowed ACE Derivatives and Commodity Exchange to discontinue operations as a bourse and withdrew recognition granted to it.ACE Derivatives and Commodity Exchange Ltd, Ahmedabad or ACE (formerly known as The Ahmedabad Commodity Exchange), was granted recognition as a commodity derivatives bourse in August 2010.However, trading operations in ACE, primarily organising futures trading in certain commodities, were suspended with effect from May 31, 2015.
It has not been able to resume trading on its platform till date, regulator said in an order dated December 31.Further, more than two years have elapsed from date of suspension of trading but exchange has not formulated any credible revival plan for purpose of revival of its trading operations, it added.Under rules, if there is no trading operation on platform of any commodity derivatives exchange for more than 12 months then such bourse is liable to exit.Following this, ACE decided to voluntarily surrender recognition granted to it as a deemed recognised stock exchange.After considering all facts, relevant documents, valuation report and submissions by exchange placed on record for purpose of considering grant of exit, Securities and Exchange Board of India (Sebi) noted that it is a fit case to allow exit to ACE."Ipermit exit of ACE Derivatives and Commodity Exchange Ltd as a stock exchange and thus consequent withdrawal of recognition granted to ACE," Sebi's whole time member Santosh Kumar Mohanty said.The regulator noted ACE has substantially complied with all norms and has submitted a "written undertaking to state that it does not have any third party liabilities or undisclosed liabilities in respect of futures trading and that it undertakes to assume complete responsibility for financial implications of any such claims that may arise at any future date against ACE".