FMC gives nod for IPO of MCX

India's largest commodity bourse, Multi Commodity Exchange (MCX), has got unconditional approval from regulator Forward Market Commission (FMC) to launch an initial public offer (IPO).

On April 22, FMC had granted a no-objection certificate (NOC) to MCX for its proposed IPO, subject to the condition that the exchange sells a 10 per cent stake to public sector firms and agri-co-operatives.

However, the exchange could not find any buyers for its offer last month and hence approached the FMC for exemption of this condition.

"We have exempted this condition and given a NOC for MCX IPO," FMC Chairman B C Khatua told PTI.

When contacted, a MCX spokesperson declined to comment on when the exchange plans to approach market regulator Sebi for approval to launch the IPO.

MCX, promoted by Financial Technologies, had to scrap its IPO in August, 2008, due to poor market condition.

As per the guidelines prescribed by the FMC on the equity structure for the national commodity exchange, FT has to reduce its stake in MCX to 26 per cent by September, 2010. At present, FT has a 31 per cent stake in MCX.

However, FMC can extend this deadline by one year "in exceptional cases on genuine grounds".

MCX is the sixth-largest commodity exchange in the world. It offers futures trading in more than 40 commodities that include bullion, energy, ferrous and non-ferrous metals, oil and oil seeds, cereal and pulses.