 "Reliance, Axis MFs get FMC nod to hold upto 5% in MCX")
The Forward Markets Commission (FMC) has allowed Reliance and Axis mutual funds (MFs) to hold up to five per cent stake each in Multi Commodity Exchange (MCX). Any entity seeking to hold more than two per cent in the commodity exchange has to take prior approval of the commodities market regulator.
According to the holding pattern filed by the MCX, as of December 2014, Reliance MF held 2.16 per cent in MCX, while Axis MF’s stake stood at 1.95 per cent.
On Thursday, the MCX stock closed at Rs 1,038 on the BSE, against Rs 850 a month ago. The MCX stock has been rising on hope the FMC will be merged with Sebi.
If that happens, an approval for options trading could come early and more participants such as banks and MFs might be allowed to enter the commodity futures segment.
Market participants also expect relaxation in the commodities transaction tax.
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