FMC gives nod to MCX IPO

The country's top commodity bourse Multi Commodity Exchange has received the permission from commodity market regulator FMC for launching the initial public offer.

"The Commission on April 22, 2010 has granted the permission/no objection certificate (NOC) to MCX for its proposed IPO subject to certain conditions," the Forward Markets Commission (FMC) said in a statement.

Two years back, MCX had got the NOC for launching the IPO from the regulator, after which the exchange sought the approval from the capital market regulator SEBI. However, in August 2008, the exchange decided to scrap its IPO plan to sell six million shares as turbulent stock markets sapped investors' appetite for risk.

As NOC expired recently, the exchange had applied for its renewal. Under FMC rule, it is mandatory for commodity exchanges to get NOC from the regulator for launching its IPO.

Asked if MCX would file fresh prospectus, the exchange's spokesperson told PTI, "We have not filed any draft red-herring prospectus (DRHP) and not finalised any time frame. So we cannot comment now."

Currently, MCX enjoys market leadership with a share of over 75 per cent in volumes traded on commodities exchanges in India. The turnover of the exchange was Rs 6,03,455 crore in April.