Multi Commodity Exchange (MCX) shares climbed as much as 8.88 per cent on Monday after after the Reserve Bank (RBI) removed restriction imposed on foreign institution investors or registered foreign portfolio investors on buying equity shares in the commodity bourse.
At 3.02 pm, shares of MCX were trading 6.10 per cent up at Rs 910.10. The scrip opened at Rs 884.35 and has touched a high and low of Rs 934 and Rs 884.35, respectively, in trade so far. The scrip later closed 6.85 per cent up at Rs 916.60.
According to a notification by RBI, the aggregate share holdings in Multi Commodity Exchange of India (MCX) by Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) have gone below the prescribed threshold caution limit stipulated under the extant FDI policy. Therefore the restrictions placed on the purchase of shares of the above company are withdrawn with immediate effect.
MCX, the leading commodity bourse, largely offers futures trading in non-agricultural commodities. The exchange contributes maximum business to the total turnover of the commodity futures market.