MCX shares pare early gains even as SEBI simplifies norms for launching options in commodities; stock gains 179% in 1 year

Shares of the country’s leading commodity exchange MCX swung between gains and losses even as the market regulator SEBI has simplified norms for launching options with commodity futures as underlying.

At the last count, shares of the company traded marginally lower at Rs 3,807.2, while at day's high it zoomed to Rs 3,883.3, gaining 2 per cent over the previous close.

In the circular dated May 27, the market watchdog said options would be permitted for trading on a stock exchange only on those commodity futures as underlying, which are traded on its platform and satisfy the criteria specified below on the respective exchange:

i. The average daily turnover of underlying futures contracts of the corresponding commodity during the previous twelve months, shall be at least Rs 100 crore for agricultural and agri-processed commodities. Earlier, the same was pegged at Rs 200 crore and Rs 1000 crore for other commodities

The said change will come into force from June 1, it said.

"It is decided that for launching options contracts on agricultural and agri-processed commodities, the average daily turnover of underlying futures contracts of the corresponding commodity during the previous twelve months shall be Rs 100 crore instead of existing Rs 200 crore," read SEBI's circular.

The decision is taken considering representations received from market participants and deliberations by Sebi's Commodity Derivatives Advisory Committee (CDAC).

Shares of MCX have leaped by a significant 178.5 per cent in the last one year, while it has underperformed giving a negative return of 8.6 per cent in the last one month.

(With PTI inputs)