Multi Commodity Exchange of India Ltd. confirmed that the Securities and Exchange Board of India is seeking a forensic audit of its trading software.

The bourse was responding to a Jan. 24 Mint report stating that SEBI had requested a forensic audit of its trading software to examine if the software gave preferential access to certain members.

MCX said the regulator had written to it regarding the matter and that it is acting appropriately in that regard. MCX did not give out further details as the matter is under regulatory purview.

The Securities and Exchange Board of India is seeking a forensic audit to address some issues with the trading software, "two people familiar with the development" told Mint. The audit will reportedly ensure that MCX is using the best available software and determine if the software has given any unfair trading advantage to members who are using the same software for their own operations.

The software is owned and operated by Financial Technologies India Ltd., which has been renamed 63 Moons Technologies Ltd.

The regulator also wants to determine if the software is being used to gather price sensitive information.

MCX has reportedly started looking for a forensic auditor and will submit its report to the regulator by April.