MCX shares soar 5% as Sebi plans to enable deeper participation

MCX shares rose 5 per cent after Sebi said it is considering a plan to allow banks and pension funds to trade commodities

Shares of Multi-Commodity Exchange (MCX) surged over 5 per cent on Wednesday after the securities market regulator said it is considering a plan to allow banks and pension funds to trade commodities. 

 

The commodity trading platform's stock rose as much as 5.09 per cent during the day to ₹8.035 per share, the biggest intraday rise since September 1 this year. The stock pared gains to trade 4.7 per cent higher at ₹8.011 apiece, compared to a 0.37 per cent advance in Nifty 50 as of 12:22 PM. 

 

Shares of the company rose to the highest level since August 25 and currently trade at 2.6 times the average 30-day trading volume, according to Bloomberg. The counter has risen 27 per cent this year, compared to a 7 per cent advance in the benchmark Nifty 50. MCX has a total market capitalisation of ₹40,634.23 crore. 

 

Sebi eyes deepening commodity market

The Securities and Exchange Board of India (Sebi) is considering a plan to allow banks, insurance companies and pension funds to participate in commodity derivatives, Chairman Tuhin Kanta Pandey said at an event. He also said that the regulator is considering a plan to allow foreign investors to trade in non-agriculture, non-cash settled derivative contracts.

 

Pandey said that Sebi will engage with the government on its plan for domestic institutions to trade commodity derivatives, adding the regulator has formed a panel to consider ways to deepen participation in farm and non-farm derivatives. 

 

Last month, the commodity exchange launched the trading of Nickel futures contracts. The launch of the Nickel futures contract will provide a robust mechanism for these industries to help them manage their price risks, making them more competitive. 

 

MCX had even launched electricity futures contracts just earlier this year. The introduction of electricity derivatives indicates a potential revenue contribution of 3-12 per cent, analysts at UBS said earlier. And, "on new silver options, we expect good traction given the preference for near-to-expiry contracts." 

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MCX Q1 results 

The commodity exchange reported a profit after tax (PAT) of ₹203.19 crore during the quarter ended June 30, 2025, up 83 per cent from ₹110.92 crore reported in the corresponding period of the previous financial year. The revenue from operations figure stood at ₹373.21 crore during the quarter under review, marking a year-on-year (Y-o-Y) growth of 59 per cent, from ₹234 crore reported in Q1FY25.

 

MCX's total income for the quarter under review stood at ₹405.82 crore, as against ₹253.19 crore reported in the first quarter of FY25, indicating a rise of 60 per cent. That apart, Average Daily Turnover (ADT) of futures and options increased by 80 per cent Y-o-Y to ₹3,10,775 crores from ₹1,72,759 crore.