MCX Gets Sebi Approval For New Commodity Derivatives Platform After Delays
The nod comes after a series of delays and concerns raised by Sebi, eventually culminating in Sebi’s temporary hold on the platform’s launch
The Multi Commodity Exchange of India (MCX) has received the green light from the Securities and Exchange Board of India (Sebi) to launch its long-awaited web-based commodity derivatives platform (CDP).
The nod comes after a series of delays and concerns raised by Sebi, eventually culminating in Sebi’s temporary hold on the platform’s launch.
The approval is a significant milestone for MCX, which had originally planned to go live with the CDP in the first week of October. However, Sebi had asked MCX to postpone its launch, citing concerns over the readiness and technical support for the platform. The regulatory body has now withdrawn its “abeyance” order and requested that MCX propose a new launch date.
The decision by Sebi’s technical advisory committee to approve the CDP marks a turning point for MCX, prompting a surge in the company’s stock price. Over the past month, MCX’s stock has climbed 18 per cent, notably outperforming the benchmark Sensex index. On 6 October, MCX’s stock price jumped by 5.06 per cent, closing at Rs 2,047.95 per share.
The investor group Chennai Financial Markets and Accountability (CFMA) played a pivotal role in bringing the concerns over the CDP to Sebi’s attention. Their request for Sebi to ensure that MCX had the necessary technical support for the platform triggered Sebi’s intervention and the subsequent delay.
