Multi Commodity Exchange of India (MCX) today said it hopes that the proposed amendments in Forward Contract Regulation Act (FCRA) for allowing trading of options and indices in commodities will be soon passed by Parliament.
A Parliamentary Standing Committee, reviewing amendments to the FCRA, has already submitted its report, permitting index derivatives (futures and options) and options in individual commodities.
It has also recommended independence and power to the regulator - Forward Markets Commission (FMC).
"We hope that Parliament will approve recommendations of the standing committee that allows trading of options and indices in commodities," MCX MD and CEO Lamon Rutten told reporters here while its IPO that will hit the market on February 22 and close on February 24.
The amendment in the FCRA would allow "us to expand our product range by offering trading in real estate indices and futures and options on rainfall based-products", he added.
Rutten said MCX has tie-ups with firms providing weather and real estate related data.
MCX plans to expand network by providing innovative products and introducing new revenue lines such as data vending, he added.
MCX, which aims to raise Rs 663 crore, has set a price band of Rs 860 to Rs 1,032 a share for the IPO.
The offer would comprise of sale of about 6.427 million shares, accounting for a 12.6% stake in the company. This would include 2,50,000 shares reserved for employees.
Besides the promoter, Financial Technologies (India) Ltd, shares would also be sold by other shareholders like State Bank of India, Corporation Bank, Bank of Baroda, ICICI Lombard General Insurance, GLG Financials Fund and Alexandra Mauritius Ltd in the IPO.
MCX is the largest commodity bourse in the country, with more than 80% market share.
It is the fifth largest commodity exchange globally and figures among the top two positions in gold and silver segments.
It would be the first exchange in India to go public, putting it on par with global markets like the US, the UK, Japan, Australia, Singapore and Hong Kong.
MCX had recorded Rs 447.5 crore income and Rs 176.2 crore of net profit in the fiscal ended March 31, 2011.
In the current fiscal, the company has posted a net profit of Rs 218 crore and total income of Rs 474 crore for the nine-month period ended December 31.