MCX hits the roof after changes in MCX-SX board

Multi Commodity Exchange of India hit an upper circuit limit of 5% at Rs 425 at 13:49 IST on BSE after a stock and currency exchange partly owned by the company announced changes to its management and board.

Meanwhile, the BSE Sensex was down 17.62 points, or 0.09%, to 20,231.64.

On BSE, 26,000 shares were traded in the counter compared with average volume of 2.18 lakh shares in the past one quarter.

The stock hit a high of Rs 425 and a low of Rs 412 so far during the day. The stock hit a record high of Rs 1,617 on 13 November 2012. The stock hit a record low of Rs 238.30 on 19 August 2013.

The stock had underperformed the market over the past one month till 9 October 2013, falling 9.66% compared with the Sensex's 5.08% rise. The scrip had also underperformed the market in past one quarter, sliding 44.77% as against Sensex's 4.17% rise.

The small-cap company has an equity capital of Rs 51 crore. Face value per share is Rs 10.

MCX Stock Exchange (MCX-SX) announced after market hours on Wednesday, 9 October 2013, that Vice-Chairman Jignesh Shah and Managing Director & CEO Joseph Massey stepped down from the board.

Meanwhile, the exchange said in an announcement the Securities and Exchange Board of India (Sebi) had, through a letter dated 8 October 2013, nominated former LIC head, Thomas Mathew T, as MCX-SX's public interest director.

U Venkataraman, whole-time director, will assist a special committee of public interest directors in carrying out the functions of the exchange, according to the statement.

Last month, Sebi renewed the license of MCX-SX stock exchange for a period of one year beginning 16 September 2013. The recognition was due to expire on 15 September 2013.

After granting the approval, Sebi asked the MCX-SX shareholders to reconstitute its board and rejig its top management if necessary to improve governance standards within the stock exchange.

The order from Sebi came after MCX-SX's affiliated commodity exchange, the National Stock Exchange of India (NSEL), abruptly suspended trading. NSEL has since struggled to square off outstanding contracts worth over Rs 5500 crore.

Financial Technologies (India) (FTIL), which controls NSEL, holds a 26% stake in Multi Commodity Exchange of India (MCX). FTIL and MCX are the promoters of the MCX-SX stock exchange.

MCX's net profit fell 7.14% to Rs 60.12 crore on 3.02% increase in total income to Rs 151.35 crore in Q1 June 2013 over Q1 June 2012.

MCX is a dominant player in commodity exchanges in India.

Powered by Capital Market - Live News