Multi Commodity Exchange of India (MCX) on Friday said the country’s markets regulator Sebi has asked the company to put on hold the proposed go-live of its new commodity derivatives platform planned for next week.
The above action has been taken by the market regulator in view of the writ petitions filed by Chennai Financial Markets and Accountability (CFMA) on Commodity Derivatives Platform (CDP).
“It may be noted that writ petitions filed by CFMA on CDP are pending before the Hon’ble Madras High Court for disposal,” MCX said in an exchange filing said.
The Sebi had informed MCX that CFMA has forwarded a letter dated Sept. 27 about the new platform and since it involves “technical issues”, it will discuss them in its meeting, as per the exchange filing from MCX.
Sebi will discuss the commodity platform in its technical advisory committee meeting to be held shortly, MCX said in a statement.
However, MCX said that the exchange is ready and keen to go live as soon as permitted. It will continue to conduct CDP mock tests pending further directions in the matter from Sebi, it added.
Shares of India’s largest commodity exchange the Multi Commodity Exchange (MCX) plunged nearly 8% to the day’s low of Rs 1,932.05 on Friday following the development.
With today’s fall, the stock was set to snap three-session winning streak. The company has been conducting its mock sessions since September 1 and the stock has gained over 24% on the NSE during this period.
MCX shares are currently trading above their 50-day and 200-day Simple Moving Averages (SMA) and the recent rally has taken the counter in a strongly overbought zone. According to Trendlyne data, momentum indicators RSI and MFI stood at 80.7 and 88, respectively.
On Thursday, the stock hit its 52-week high of Rs 2,114.40.
(With inputs from Reuters)
