India's capital markets regulator will designate commodity derivatives exchanges with annual turnover of more than 5 trillion rupees as systemically important financial market infrastructures.
The Securities and Exchange Board of India said Dec. 16 that the new designation will apply to the National Commodity & Derivatives Exchange Ltd. and Multi Commodity Exchange of India Ltd.
SEBI said that all commodity derivative exchanges are clearing and settling trade executed on their platform, which means they are acting as central counterparties. As such, the regulator decided to designate those exchanges with turnover of more than 5 trillion rupees as systemically important.
MCX and NCDEX will have to comply with the principles of financial market infrastructures until their clearing and settlement functions are transferred to recognized clearing corporations.
As of Dec. 19, US$1 was equivalent to 67.82 Indian rupees.