MCX climbs after RBI allows FII participation

NEW DELHI: Shares of commodity bourse MCX ended higher by 6.85 per cent on Monday after RBI allowed overseas investors to buy equity shares in Multi Commodity Exchange (MCX). Foreign shareholding in the bourse has fallen below the prescribed threshold limit.

As per data available on BSE, public holding in the company was 99.64 per cent as of March 2016, while the rest of 0.36 per cent was held by others. Following the reports, MCX climbed 8.88 per cent to hit a high of Rs 934 in trade on BSE.

Meanwhile, there were reports that Sebi has asked the rival NCDEX to examine whether its senior management was involvement in the recent default cases relating to caster seed derivatives.

According to a report in ET, the matter relates to 13 clients, who held long or outstanding buy positions worth Rs 540 crore but defaulted on their pay in obligations to four brokers after a steep fall in the castor seed February contract price. The longs accounted for 10 per cent of the country's annual production of castor seed.

The Securities and Exchange Board of India ( Sebi ) has asked the board of NCDEX to examine the senior management's involvement in the issue and report to the regulator by the month-end the action it plans to take, ET reported.

Late in January, under Sebi's direction, NCDEX was forced to suspend castor derivatives.