MCX share price jumps 4% after Sebi chief Tuhin Kanta Pandey hints at allowing banks, FPI in commodity trade

MCX share price jumped more than 4% on Wednesday after reports that the Securities and Exchange Board of India (SEBI) is considering widening participation in the commodity derivatives market.

MCX shares rallied as much as 5.01% to ₹8,034.65 apiece on the BSE following remarks from SEBI Chairman Tuhin Kanta Pandey at an event hosted by the Multi Commodity Exchange of India (MCX).

Sebi chairman said it will engage with the government to enable banks and pension funds to trade commodities as part of the regulator’s agenda to strengthen commodities markets.

“The Securities and Exchange Board (SEBI) is considering allowing Foreign Portfolio Investors (FPI) to trade in non-cash settled, non-agricultural derivatives contracts,” Pandey said.

The proposals are part of SEBI's agenda to strengthen commodities markets and enhanced institutional participation will bring in increased liquidity, he added.

Market experts believe SEBI’s proposal to allow broader institutional participation could significantly boost liquidity and further deepen India’s commodity markets, supporting MCX’s long-term growth prospects.

At 12:15 PM, MCX share price was trading 4.15% higher at ₹7,968.60 apiece on the BSE.

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