MCXCCL Resolves Margin Shortfall Dispute with SEBI

MCXCCL settled a case with SEBI concerning margin shortfall calculation discrepancies by paying Rs 2.7 crore. The case involved alleged breaches of SECC Regulations. MCXCCL's method of calculating margin shortfall was deemed incorrect, leading to the settlement without admission of guilt.

In a significant development, the Multi Commodity Exchange Clearing Corporation Limited (MCXCCL) has settled a case with the Securities and Exchange Board of India (SEBI), resolving issues related to the calculation of the margin shortfall block amount. The resolution was achieved with a payment of Rs 2.7 crore.

The crux of the matter involved alleged violations of the Securities Contracts (Regulations) 2018 pertaining to stock exchanges and clearing corporations. MCXCCL agreed to settle the allegations, asserting neither admission nor denial of the findings, thereby concluding the proceedings in respect of these allegations.

Inspection of MCXCCL's practices revealed discrepancies in their margin shortfall calculation, as they blocked the highest shortfall rather than a cumulative one, which was inconsistent with the regulatory framework. This settlement underscores the importance of adherence to prescribed risk mitigation measures in commodity exchanges.

(With inputs from agencies.)