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FMC may restrict MCX from launching fresh contracts

26 Mar 2014 Evaluate

Multi Commodity Exchange of India (MCX) may be barred from launching fresh contracts if it fails to bring down promoter’s stake to 2%. Forward Markets Commission (FMC) might crack the whip on MCX in case the bourse fails to comply with its directive on reducing promoter shareholding which came in the wake of Rs 5,600 crore payment crisis at NSEL. The market regulator may take the action if the company does not comply with the shareholding order by April 30, 2014.

However, Jignesh Shah-led FTIL group has challenged the commodity market regulator’s order in Bombay High Court. FMC, earlier in its order dated December 17, 2013, had declared FTIL and its chief Jignesh Shah unfit to run any exchange following the turmoil at group firm National Spot Exchange (NSEL). Following this the board of MCX asked its promoter FTIL to divest shares in excess of 2%.

NSEL, which is promoted by FTIL, has been defaulting on payments to 13,000 investors. Last year in July, FMC had halted trading at the exchange. Multiple investigative agencies like Enforcement Directorate and the CBI are already probing the NSEL payment crisis, while Revenue department, Reserve Bank, Sebi, FMC and Corporate Affairs Ministry are also looking into it.

Multi Commodity Exch Share Price

2855.45 -4.65 (-0.16%)
17-Apr-2026 16:59 View Price Chart
Peers
Company Name CMP
Motilal Oswal Fin 815.95
Angel One 323.35
IIFL Capital Service 313.40
Nuvama Wealth 1403.20
Share India Sec. 147.05
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