MCX shares slump after regulator asks commodity exchange to put move to new platform on hold
MCX shares suffered heavy losses on Friday after the commodity exchange said the shift of its new platform, originally scheduled on October 3, was on hold.
MCX shares suffered heavy losses on Friday, retreating from a 52-week high scaled the previous day, after the commodity exchange said the shift to its new platform—originally scheduled to take place on October 3—was on hold. The MCX stock plunged by as much as Rs 176.9, or 8.4 per cent, to Rs 1,923.5 apiece on BSE in early trade, nearly giving up all of the previous day's gains.
"SEBI has vide email dated September 28, 2023 forwarded a copy of the letter dated September 27, 2023 from Chennai Financial Markets and Accountability (CFMA) regarding the Commodity Derivatives Platform (CDP). It may be noted that writ petitions filed by CFMA on the CDP are pending before the Hon’ble Madras High Court for disposal," MCX said in a regulatory filing before market hours on Friday.
"The Regulator has informed that since the matter involves technical issues, the same would be discussed in the SEBI Technical Advisory Committee meeting, which would be held shortly. Meanwhile, SEBI has advised the Exchange to keep the proposed Go-Live of CDP in abeyance," it added.
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MCX also said it will continue to conduct mock tests for the new platform pending further directions in the matter from SEBI as it is "ready and keen to go-live as soon as permitted".
At 10:25 am, MCX shares were trading lower by Rs 159, or 7.6 per cent, for the day at Rs 1,941.4 apiece on the bourse.
The latest communication from the exchange marks a U-turn from its announcement this week, which sent its shares leaping by Rs 184.4, or 9.5 per cent, to a 52-week high of Rs 2,119.6 apiece on Thursday. Read more on how MCX shares fared on September 28
In a circular issued post-market hours on September 27, MCX had said it would conduct a mock trading session on October 2, 2023 "in order to allow members to participate, validate setup and connection", announcing its move to the new commodity derivatives platform on October 3.
MCX shares: Past performance
Thursday's spike took MCX's overall gains for the year to 35.2 per cent as against the headline Nifty index's 7.8 per cent.