New Delhi: SEBI is investigating the technical problem on Multi Commodity Exchange (MCX) on October 28 that led to a four-and-half-hour de-lay in starting trading on the exchange.
A report by Reuters said that MCX may face a monetary penalty for the same.
Sebi’s rules say that in case a technical glitch on an exchange leads to trading halt of between 45 minutes and 3 hours, the exchange could be fined at least 10 per cent of its average net profit of the previous two years, or Rs 2 crore, whichever is higher.
In case the trading halt extends beyond three hours, an additional 10 per cent of its average net profit of the previous two years, or Rs 2 crore, whichever is higher would be fined.
In addition to exchanges, these rules apply to depositories and clearing corporations also.
On October 28, MCX’s trading disruption extended up to four and half hours.
On Friday MCX said that it had identified the cause of the technical glitch of October 28 and had fixed it.
“We have taken steps to address the constraints to prevent similar issues in the future. Notably, trading systems have not had issues.
Exchange systems are well positioned to support market volumes and growth,” the Multi Commodity Exchange said in a release.
“We remain committed to strengthening our operational robustness and will continue investing in cutting-edge technology to enhance perfor-mance, reliability, and scalability, ensuring that we meet the evolving needs of our members, participants and stakeholders,” it said.