MCX shares fall over 3% as govt rejects FDI proposal
Shares of MCX Wednesday fell by over 3 percent after the government rejected foreign direct investment proposal of the commodity bourse.
Mumbai: Shares of MCX Wednesday fell by over 3 percent after the government rejected foreign direct investment proposal of the commodity bourse.
After plunging nearly 4 percent to intra-day low of Rs 751, the stock finally ended at Rs 754.85, down 3.28 percent on the BSE.
On the NSE, the scrip ended 3.82 percent lower at Rs 750.90.
The proposal of Mumbai-based MCX was rejected by the Foreign Investment Promotion Board (FIPB) in its meeting held on June 14, 2013, an official statement said.
MCX was seeking post facto approval for FDI received before issuance of Press Note 2 of 2008. The Press Note detailed guidelines of foreign investment in commodity exchanges.
MCX, the leading commodity bourse, largely offers futures trading in non-agricultural commodities. The exchange contributes maximum business to the total turnover of the commodity futures market.
The broader market was also weak with the BSE benchmark Sensex ending the day at 19,177.76, down 286.06 points.