MCX Shares Rise After SEBI Allows Commodity Derivatives Platform Launch

Shares of Multi Commodity Exchange of India Ltd. advanced after the Securities and Exchange Board of India allowed it to go live with its proposed commodity derivatives platform.

"SEBI has withdrawn its directions to MCX and MCXCCL to keep the proposed go-live of CDP in abeyance," according to an exchange filing.

Multi Commodity Exchange Clearing Corporation Ltd., or MCXCCL, is a clearing corporation in the commodity derivatives market.

On Sept. 29, the market regulator asked MCX to delay the launch of the commodity derivatives platform, which was scheduled to go live by Oct. 3.

The abeyance order came in light of the fact that the matter involves technical issues and would be taken up by the SEBI Technical Advisory Committee for discussion, MCX had told exchanges last month.

SEBI had asked MCX and MCXCCL to furnish detailed comments on the issues raised by Chennai Financial Markets and Accountability on CDP by Oct. 3. In the meantime, MCX continued CDP mock tests, awaiting SEBI's permission to go live.

Shares of the company rose 4.87% to Rs 2,139.00 apiece, just shy of their 52-week high. It pared gains to trade 3.32% higher at Rs 2,107.30 apiece, compared to a 0.35% decline in the benchmark NSE Nifty 50 as of 9:54 a.m.

It has risen 35.8% on a year-to-date basis. The total traded volume so far in the day stood at 6.9 times its 30-day average. The relative strength index was at 70.4, implying that the stock may be overbought.

Five out of the 10 analysts tracking MCX maintain a 'buy' rating, two recommend a 'hold' and three suggest a 'sell,' according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 5.3%.