MCX gets nod from SEBI to launch new commodity derivatives platform

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Multi Commodity Exchange of India (MCX), India’s largest commodity derivatives exchange, on October 8, received approval from the Securities and Exchange Board of India (SEBI) Technical Advisory Committee to launch a new web-based commodity derivatives platform (CPD).

“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 an exchange filing.

“Accordingly, SEBI has withdrawn its directions to MCX and MCXCCL to keep the proposed Go-Live of CDP in abeyance,” it added.

The approval comes after the SEBI had on September 29 asked the company to put on hold the proposed go-live of its new commodity derivatives platform planned for the first week of October.

Earlier, MCX had said that its commodity derivatives platform would go live on October 3.

The above action had been taken by the market regulator in view of the writ petitions filed by Chennai Financial Markets and Accountability (CFMA) on CDP.
Shares of India’s largest commodity exchange, the Multi Commodity Exchange, rallied 4.6% to Rs 2,039 on Friday’s trade. On a year-to-date basis, the stock has surged 40%, while it has rallied over 55% in the past one year.As per Trendlyne data, the average target price of the stock is Rs 1,811, which indicates a downside of 11% from the current market prices. The consensus recommendation from 10 analysts for the stock is a ‘Hold’.

MCX shares are currently trading above their 50-day, 100-day and 200-day Simple Moving Averages (SMA). According to Trendlyne data, MCX’s day RSI (14) is at 66.9. The RSI below 30 is considered oversold, and above 70 is overbought. Meanwhile, MACD is at 72.5, which is above its center and signal Line, this is a bullish indicator.

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