MCX soars over 12% as commodities market gets options trading
Shares of Multi Commodity Exchange of India soared over 12 percent to hit its one-year high level after regulator Sebi allowed options trading on the exchanges.
New Delhi: Shares of Multi Commodity Exchange of India soared over 12 percent to hit its one-year high level after regulator Sebi allowed options trading on the exchanges.
The stock surged 12.3 percent to touch its one-year high mark of Rs 1,400 on BSE.
On NSE, it jumped 11.87 percent to Rs 1,399 -- its 52-week high.
In a major push to deepen the commodity derivatives market, regulator Sebi yesterday allowed options trading on exchanges while six new products, including diamond, have been added to the list of commodities on which derivative contracts can be launched and traded.
The new items -- diamond, tea, eggs, cocoa, pig iron and brass -- have taken the total number of permitted commodities on the notified list to 91.
Exchanges, investors and other market participants have been demanding options trading as also new products for a long time. They have welcomed the move taken by the government and Sebi, which now regulates the commodities market as well.
So far, only futures contracts are permitted in the commodity derivatives trading space.
"Introduction of options would deepen and transform the Indian commodity derivatives markets both in terms of products and participants. It will also complement the existing futures contracts and make Indian commodity derivatives more vibrant and efficient," MCX MD and CEO Mrugank Paranjape said.