Now Reading: MCX gets Sebi nod for coal, minerals spot exchanges
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MCX gets Sebi nod for coal, minerals spot exchanges
Multi Commodity Exchange (MCX) has received Sebi approval to invest in a proposed minerals spot exchange, months after getting the green light for a coal exchange subsidiary. MD and CEO Pratibha Rai…
The Story in Brief
Multi Commodity Exchange (MCX) has received Sebi approval to invest in a proposed minerals spot exchange, months after getting the green light for a coal exchange subsidiary. MD and CEO Pratibha Rai said India's mineral base will be the primary focus, aligning with government policy, but multiple minerals will not be taken up simultaneously.
MCX is also exploring weather-related derivative contracts, linking the rural and consumption economy to weather patterns. Meanwhile, Sebi has proposed allowing foreign portfolio investors (FPIs) in physically settled non-agricultural commodity derivatives. Rai welcomed the move, saying FPIs will bring diversity. MCX shares rose 2.6% on Wednesday.
The Indian Opinion
The buzz around MCX's new coal and minerals exchanges, and weather derivatives, sounds promising but risks overhyping execution timelines. These markets take years to develop. The real test will be whether Sebi's FPI proposal actually boosts liquidity and depth, or just adds speculative noise. Watch for the first volume numbers from the coal exchange before calling it a game-changer.
Source: businesstoday.in
This story was synthesised by AI from the source linked above.
