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In May 2022, SEBI passed an order withdrawing the recognition given to ICEX as a stock exchange. Its order was based on the argument that the minimum net worth for the exchanges fell below ₹100 crore. SEBI also pointed out that the exchange did not address the various infrastructure issues pointed out by the regulator during the inspection. ICEX argued that it was operating on a thin budget and did not have the financial power to address the issues pointed out by SEBI.
In a 14-page ruling, the SAT said the exchange was not accused of any illegal activity such as defrauding investors or abusing its status as a stock exchange for vested gains.
SAT has given one year to ICEX to bring in the required funds and meet SEBI norms. However, ICEX has been asked to cease trading operations until the net worth criteria are met. ICEX voluntarily ceased its trading operations in March 2022 and is currently offering only mutual fund related products.
SAT also said that if ICEX is successful in finding capital before the deadline, it can apply for resumption of business operations with SEBI. The tribunal has asked SEBI to consider the request and pass appropriate orders.
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