MCX surges as RBI permits FIIs to buy stake

The stock was up 7% to Rs 917 on the BSE in noon deal in otherwise subdued market.

Multi Commodity Exchange of India (MCX) was trading higher by 7% to Rs 917 on the BSE in noon deals in otherwise subdued market, after the company announced that the Reserve Bank of India (RBI) withdrawn the restrictions placed on purchase of the company's shares by foreign institutional investors (FIIs) and registered foreign portfolio investors (RPFIs) with immediate effect.

The RBI said the aggregate shareholding of FIIs/RPIs under portfolio investment scheme in Multi Commodity Exchange of India has gone below the prescribed threshold caution limit stipulated as per the current foreign direct investment (FDI) policy.

"Hence, the restrictions placed on the purchase of shares the above company withdrawn with immediate effect. The equity shares of MCX can now be purchased through primary market and stock exchanges," it added.

The stock hit a high of Rs 934 and has seen nearly five-fold jump in trading volumes. A combined 1.23 million shares changed hands on the counter on the BSE and NSE. At 12:54 pm, the S&P BSE Sensex was down 0.23% at 25,244 points.