Shares of Multi Commodity Exchange of India Ltd (MCX) surged more than 4% on Wednesday after reports suggested that the Securities and Exchange Board of India (SEBI) is exploring measures to broaden participation in the country’s commodity derivatives market.
MCX stock climbed as much as 5.01% to touch ₹8,034.65 apiece on the BSE during intraday trade before easing slightly. Around 12:15 PM, the stock was quoted 4.15% higher at ₹7,968.60.
The rally came after SEBI Chairman Tuhin Kanta Pandey, speaking at an event hosted by MCX, indicated that the regulator intends to work with the government to enable banks and pension funds to trade in commodities.
Pandey also said SEBI is weighing the possibility of allowing Foreign Portfolio Investors (FPIs) to participate in non-cash settled, non-agricultural derivatives contracts. According to him, these reforms form part of the regulator’s broader agenda to enhance the depth and resilience of India’s commodity markets.
Market analysts noted that the move, if implemented, could substantially increase liquidity and attract more institutional players, which in turn would support MCX’s business and long-term growth outlook.