The Indian Commodity Exchange (ICEX), promoted by Reliance Capital and the Indiabulls group, has decided to close down on account of poor performance and may sell the business.
The exchange will not offer any new contracts and expects to close by May, after existing contracts expire. ICEX is jointly promoted by Reliance Exchangenext, a unit of Reliance Capital, state-owned MMTC and Indiabulls Financial Services, among others. It started in 2009 and offered futures trading in commodities such as precious metals, metals, energy, oils and oilseeds, and minerals on its electronic platform.
"The ICEX management has taken a decision to close down operations of the exchange in view of poor financial returns," according to an ICEX shareholder. "No new contracts will be launched. We will shut down after phasing out existing ones by May."
Reliance Exchangenext and MMTC, the major shareholders, declined to comment on the matter.
The exchange has also set up a committee to explore strategic alternatives, the shareholder said.
The three-member committee will explore options for the exchange, including possible sale or merger with another bourse, said the shareholder.
The shareholder said ICEX's net worth had eroded by 80% from R100 crore at the start of operations in 2009.
Business remained dull due to the imposition of commodity transaction cost and the payment crisis on the National Spot Exchange.