MCX shares hit fresh highs as SEBI signals overhaul of commodity derivatives; gold, silver at record levels

Shares of Multi Commodity Exchange of India (MCX) surged to a fresh record on December 22, climbing over 4.5 per cent, amid optimism around regulatory developments in the commodity derivatives market and a sharp rally in precious metals.

At 3:24 pm, MCX shares were trading 5.08 per cent higher at Rs 10,825 apiece, extending recent gains and outperforming the broader market.

SEBI plans working group on non-agri commodity derivatives

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The rally gathered pace after Securities and Exchange Board of India (SEBI) chairman Tuhin Kanta Pandey said the market regulator is planning to constitute a working group to review the non-agricultural commodity derivatives segment.

Speaking at the 11th International Convention of the Commodity & Capital Participants Association of India (CPAI) on December 20, Pandey said the working group will be notified shortly. He added that SEBI is engaging with the Reserve Bank of India (RBI) and the Insurance Regulatory and Development Authority of India (IRDAI) to enable the participation of banks and insurance companies in the commodity derivatives market.

According to Pandey, increased institutional participation could significantly improve liquidity and make the market more efficient for hedging.

Focus on easing regulatory and GST hurdles

Pandey noted that SEBI has already set up expert groups to suggest measures for deepening the agriculture and commodity derivatives ecosystem. These groups are examining whether existing norms related to margins, position limits, and delivery and settlement mechanisms can be optimised without compromising market integrity.

He also highlighted the need to address Goods and Services Tax (GST)-related challenges faced by market participants and said SEBI will continue discussions with the government and the GST Council to resolve key issues affecting both agricultural and non-agricultural commodities, including gold.

Gold, silver hit record highs on MCX

MCX shares also benefited from a sharp rally in precious metals, with both gold and silver futures hitting lifetime highs, tracking strength in global markets.

Gold futures for February delivery climbed Rs 1,628, or 1.21 per cent, to a record Rs 1,35,824 per 10 grams on MCX. Silver futures for the March 2026 contract surged Rs 6,144, or 2.95 per cent, to touch an all-time high of Rs 2,14,583 per kilogram.

Bullion prices rose on the back of sustained central-bank buying, expectations of further US Federal Reserve rate cuts, a softer dollar, and rising safe-haven demand amid global geopolitical tensions.

Global cues support bullion rally

In overseas markets, Comex gold futures for February delivery rose nearly 1 per cent to hit a record above $4,400 per ounce, while Comex silver futures climbed over 3 per cent to around $69.5 per ounce.