Shares of Multi Commodity Exchange of India (MCX) are in focus on Monday, March 16, after reports that a SEBI-appointed committee is exploring the possibility of allowing foreign portfolio investors (FPIs) to participate in options trading in commodity derivatives.
The stock was trading at Rs 2,521.20, up Rs 22.40 or 0.90%, compared to the previous close of Rs 2,498.80 on the National Stock Exchange (NSE). During the session, the stock moved within a day range of Rs 2,440.80 to Rs 2,533.80, while the company’s market capitalisation stood at around Rs 640.73 billion.
According to reports citing sources, the SEBI-appointed Commodity Derivatives Advisory Committee (CDAC) has sought feedback from exchanges on allowing FPIs to participate in options trading in commodity derivatives. The proposal was reportedly discussed during the committee’s meeting held on February 26, and exchanges have been asked to submit their views before the next CDAC meeting.
Sources indicate that commodities such as gold and silver could be the first to be considered if the proposal moves forward.
At present, FPIs are only allowed to participate in options trading in cash-settled commodities such as energy contracts, and not across the broader commodity derivatives segment.
The possibility of wider foreign participation in commodity options trading could increase market liquidity and trading activity on platforms like MCX, which appears to have supported investor sentiment in the stock during Monday’s session.
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