Shares of Multi Commodity Exchange (MCX) gained as much as 5.33 per cent on Thursday after the Cabinet on Wednesday gave approval to raise foreign investment limit to 15 per cent from 5 per cent in stock exchanges. According to the release, the move will help in enhancing global competitiveness of Indian stock exchanges by accelerating the adoption of latest technology and global best practices which will lead to overall growth and development of the Indian capital market.
At 11.15 am, shares of MCX were trading 2.04 per cent up at Rs 1,081. The scrip opened at Rs 1,115 and has touched a high and low of Rs 1,115.90 and Rs 1,077, respectively, in trade so far. BSE Sensex was trading 106.01 points up at 28,130.34.
The government also approved the proposal to allow foreign portfolio investors to acquire shares through initial allotment, besides secondary market, in the stock exchanges.
The approval is part of this year’s Union Budget announcments regarding reforms in FDI Policy with respect to enhancement of investment limit for foreign entities in stock exchanges from 5 per cent to 15 per cent on par with domestic institutions.
Later, the scrip closed 0.84 per cent up at Rs 1,068.30.