MCX climbs 4% on Sebi nod to EFE hedging

NEW DELHI: Shares of commodity exchange MCX jumped 4 per cent in Wednesday’s trade after the market regulator Sebi approved the framework for allowing eligible foreign entities (EFEs) to hedge on Indian commodity bourses.

EFEs are defined as persons who are non-resident Indians but have underlying commodity exposure to the country in the form of commodity import or export.

Following the development, the stock rose 3.98 per cent to hit a high of Rs 814.20 on BSE. The scrip, which is trading above its short-term moving averages is down 26 per cent in the last one year compared with a 15.36 per cent rise in the BSE Sensex.


Sebi’s move to allow hedging by EFEs could deepen the market and attract domestic firms to participate on its platform. MCX is the only listed commodity derivatives bourse. Its rival, agri bourse NCDEX, comes a distant second with 9 per cent market share compared with MCX’s 90 per cent in the current fiscal year through August.