MCX hits 52-week high on SEBI nod to launch commodity derivatives platform

MCX | CMP Rs 2065 | Shares of Multi Commodity Exchange of India (MCX) advanced 5 percent intraday to a 52-week high before losing gains to close at 1 percent higher after it received the approval from SEBI tech panel to launch a new web-based commodity derivatives platform (CPD) after several delays with the market regulator earlier.

Shares of Multi Commodity Exchange of India (MCX) advanced 5 percent to touch a new 52-week high of Rs 2,139 on October 9 after it received the approval from SEBI tech panel to launch a new web-based commodity derivatives platform (CPD) after several delays with the market regulator earlier.

"Subsequently, SEBI Technical Advisory Committee has recommended that MCX and MCXCCL may Go-Live with the CDP and to intimate SEBI regarding the proposed date for Go Live," MCX said in a regulatory filing.

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The nod gains significance as SEBI, the market regulator, had asked to put on hold the proposed go-live of its new commodity derivatives platform planned for the first week of October. This delay was prompted by the filing of writ petitions by the Chennai Financial Markets and Accountability in the Madras High Court. These petitions raised technical concerns about the platform transition, leading SEBI to exercise prudence and take a cautious approach.

Today, CNBC TV-18 reported that MCX is likely to propose October 16 as the go-live date of the new platform.

In a circular dated September 27, the company announced that the new CDP platform would be interfacing with members to offer risk management, collateral management, and settlement services to both members and market participants.

Over the past month, the stock of the Mumbai-based commodity exchange has jumped 18 percent against a 1.4 percent rise in the benchmark Sensex.

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