MCX surges 5% from 52-week low on ‘no exposure’ to NSEL

MUMBAI: Shares of Multi Commodity Exchange ( MCX) surged 5 per cent in early trade after the management clarified that it has no exposure to crisis-hit National Spot Exchange (NSEL).

"MCX and National Spot Exchange (NSEL) are totally different entities with no financial commitments or exposure to each other whatsoever," MCX Managing Director and CEO Shreekant Javalgekar said in a filing with the BSE.

NSEL has to settle dues worth Rs 5,600 crore to investors after it suspended trading.

MCX and NSEL are group companies of Financial Technologies (India) Ltd. The former provides a platform for futures trading in commodities, while NSEL offers spot trading in commodities.

MCX is a debt-free company and has a net worth of Rs 1,214 crore in the quarter ended June 30. The market share continues to be above 86 per cent of the total commodity futures trade in the country, the filing added.

According to FMC data, the turnover at MCX declined by 37.36 per cent to Rs 7,76,124 crore in July from Rs 12,39,043 crore in the year-ago period.

At 10:45 a.m.; the stock was at Rs 255.40, up 5 per cent, on the BSE. It touched a high of Rs 255.40 and a low of Rs 238.30 in trade today.