MCX rises after Sebi allows foreign investors to trade in commodity market

Shares of commodity exchange MCX (Multi Commodity Exchange of India) surged as much as 4 per cent in the intraday trade on Wednesday after the markets regulator Sebi approved a proposal to allow foreign investors to trade in commodity derivatives market.

 

The regulator on Tuesday said the Sebi's board has approved the regulatory framework for permitting foreign entities having actual exposure to Indian commodity markets, to participate in the domestic commodity derivatives markets. Such entities would be classified as “Eligible Foreign Entities” (EFEs).

 

"EFEs would be allowed to trade in all commodity derivatives traded on Indian Exchanges except those contracts having underlying commodity defined as ‘Sensitive Commodity’ in terms of SEBI circular dated July 25, 2017 or by any other stipulation by SEBI which are disclosed on exchange websites will be eligible for participation," Sebi said in its press release.

 

At 12:39 pm, shares of the company were trading at Rs 802.05 apiece on BSE, up 2.43 per cent.