MCX slips on buzz Govt rejects FDI proposal

Meanwhile, the BSE Sensex was down 292.83 points, or 1.50%, to 19,170.99

On BSE, 26,000 shares were traded in the counter compared with average volume of 26,000 shares over the past two weeks.

The stock hit a high of Rs 779 and a low of Rs 752.85 so far during the day.

Reports suggested that the Foreign Investment Promotion Board (FIPB), which met on 14 June 2013, rejected the proposal of MCX.

MCX was seeking post facto approval for foreign direct investment (FDI) received before issuance of the government guidelines for foreign investment in commodity exchanges, according to media reports. The guidelines were issued in 2008.

The Government of India had laid the guidelines for foreign investment in commodity exchanges vide Press Note 2(2008) dated 12 March 2008. As per the guidelines, a composite ceiling for foreign investment of 49% was allowed with prior government approval subject to the condition that investment under the Portfolio Investment Scheme will be limited to 23% and that under the FDI Scheme will be limited to 26%. Further no foreign investor/entity including persons acting in concert will hold more than 5% of the equity in these companies.

Net profit of MCX rose 16.19% to Rs 76.63 crore on 2.59% decline in net sales to Rs 120.66 crore in Q4 March 2013 over Q4 March 2012.

MCX is a dominant player in commodity exchanges in India.

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