Sebi Fines MCX Rs 25 Lakh for Disclosure Failures

The Securities and Exchange Board of India (Sebi) has imposed a penalty of Rs 25 lakh on the Multi Commodity Exchange of India (MCX). This is due to the company's failure to adequately disclose payments made to 63 Moons Technologies for software services, which have significantly impacted MCX's financial standing.

The oversight pertained to payments made between October 2022 and June 2023, amounting to Rs 222 crore, a figure that dwarfed the company's profit of Rs 118 crore in the previous financial year. Despite its magnitude, this information was not disclosed until January 2023, contravening the Listing Obligations and Disclosure Requirements (LODR) regulations.

Sebi directed that the penalty be remitted within 45 days, emphasizing that such non-disclosures can adversely affect investor decisions, particularly when the payments represent a substantial portion of annual profits.

(With inputs from agencies.)