Shares of MCX hit record high as SEBI clears new trading platform

The Multi Commodity Exchange of India Limited (MCX), the country’s first listed exchange, witnessed a historic moment today as its shares soared to an all-time high of Rs 2,149.50 on the BSE. The trading day commenced with an opening price of Rs 2,090.05, surpassing the previous day’s closing at Rs 2,039.05. Currently, MCX is trading at Rs 2,086.85, marking a 2.34% increase. Notably, its 52-week low stands at Rs 1,289.20.

MCX plays a pivotal role as a commodity derivatives exchange, enabling online trading of commodity derivatives transactions while facilitating price discovery and risk management. Launched in November 2003, MCX operates under the regulatory oversight of the Securities and Exchange Board of India (SEBI).

Today’s remarkable surge can be attributed to the recent decision by the Securities and Exchange Board of India (SEBI) to grant approval for the launch of MCX’s new Commodity Derivatives Platform (CDP). Initially delayed following a complaint from Chennai Financial Markets and Accountability (CFMA), SEBI reevaluated its stance based on MCX’s response to the complaint and the recommendations of its Technical Advisory Committee. Consequently, SEBI lifted the abeyance order, allowing MCX to schedule the launch of the CDP at its discretion.

With a market capitalisation of approximately Rs 10,600 crore, MCX has delivered an astounding return of 56.73% over the past year. As of December 2022, MCX commands an impressive 96.8% share in the commodity derivatives market. This commanding presence extends across various sectors, holding a 100% share in precious metals and stones and energy, with the exception of agri-commodities, where it maintains a substantial 22.2% market share. The National Commodity and Derivatives Exchange Limited (NCDEX) stands as the second-largest player, holding the remaining 3.1% market share.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.