Market regulator Securities and Exchange Board of India (Sebi) has allowed Cotton Association of India (CAI) to come out of the bourse business by withdrawing its recognition. In February this year, Sebi had informed CAI that since there was no trading operation on its platform for more than 12 months, it could exit.
Following this, CAI decided to voluntarily surrender the recognition granted to it as a deemed recognised by the stock exchange. In an order passed on Thursday, Sebi informed the CAI has complied with the regulator's conditions for exit and is therefore a fit case to allow exit from capital markets.
While allowing the exit, Sebi has asked the exchange to comply with tax obligations and not to use the expression exchange in its name, among others. The CAI, formerly known as the East India Cotton Association Ltd, was granted recognition in June 1955 for organising and regulating forward contracts in cotton throughout India.