MCX Shares Drop Following SEBI Chief's Cautious Remarks on Institutional Investment
MCX slips as SEBI chief's remarks weigh
Business Standard
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The Multi Commodity Exchange of India (MCX) saw a 2.02% decline in its stock price to ₹2,911.20 after SEBI chairman Tuhin Kanta Pandey indicated that banks and insurance companies are unlikely to invest in commodity derivatives. This shift in regulatory stance dampens expectations for increased institutional participation in the market.
- 01MCX shares fell 2.02% to ₹2,911.20 following SEBI chief's comments.
- 02SEBI will not pursue further engagement with RBI and IRDAI regarding institutional investment.
- 03Pandey's remarks indicate a cautious regulatory approach towards commodity derivatives.
- 04MCX reported a 150.63% YoY increase in net profit for Q3 FY26.
- 05The exchange holds a 98% market share in commodity futures in India.
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The Multi Commodity Exchange of India (MCX) experienced a 2.02% drop in its stock price, reaching ₹2,911.20, following remarks from Tuhin Kanta Pandey, chairman of the Securities and Exchange Board of India (SEBI). During the IMC Capital Markets conference, Pandey stated that the Reserve Bank of India (RBI) and the Insurance Regulatory and Development Authority of India (IRDAI) are not inclined to permit banks and insurance companies to invest in commodity derivatives. This represents a departure from SEBI's previous position, which had indicated a willingness to engage with the government to facilitate institutional participation in commodity markets. The cautious regulatory stance has tempered expectations for new liquidity inflows into the commodity derivatives market, which had previously been a key driver of MCX's stock performance. Despite this, MCX reported a 150.63% year-on-year surge in consolidated net profit to ₹401.12 crore for Q3 FY26, with operational income increasing by 120.85% to ₹665.62 crore. The company's board is set to review Q4 results on May 8, 2026.
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The decline in MCX's stock price may affect investor sentiment and could lead to reduced trading activity on the exchange, impacting traders and investors reliant on liquidity in the commodity derivatives market.
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