Budget 2015: MCX shoots up nearly 15% as Arun Jaitley says FMC and Sebi will be merged; how it will help

NEW DELHI: Stocks of Multi Commodity Exchange of India ( MCX) shot up nearly 15 per cent in trade after the finance minister Arun Jaitley said that Forward Markets Commission (FMC) will be merged with Securities Exchange Board of India (SEBI). The gains stood at 18 per cent when seen from day's low of Rs 1,023.

During the trading day, the stock hit its fresh 52-week high of Rs 1,290.

The finance minister in his Budget speech said that that the proposal is made to strengthen regulation. FMC is the watchdog for commodity futures markets in India. On the other hand, SEBI is the regulator for capital markets.

The government, in October last year, had ordered the merger of NSEL with MCX's parent firm Financial Technologies (India), following the payment crisis at NSEL that came to light in July 2013.

FTIL is the parent company of MCX and NSEL.

Post merger, NSEL's entire business, properties and liabilities will get transferred to FTIL.

In September 2013, FMC was brought under the Finance Ministry.

The move came in the wake of the Rs 5,600 crore payment crisis at National Spot Exchange Ltd (NSEL). Earlier, FMC was with the Consumer Affairs Ministry.