Mumbai, April 20 (IANS). Multi Commodity Exchange (MCX) on Monday said it has received approval from the Securities and Exchange Board of India (SEBI) to invest in the proposed coal exchange.
MCX further said it plans to infuse up to Rs 100 crore of capital to meet the minimum net worth requirements as per the draft coal exchange rules.
This will strengthen the energy portfolio of the exchange, as MCX is currently a major player in the crude oil and natural gas derivatives markets. At the same time, last year the exchange had launched electricity futures.
MCX said in the statement that the proposed platform aims to create a regulated, transparent and technology-based market for coal trading, thereby enabling efficient pricing in the domestic market.
The exchange also informed that following the approval given by SEBI last week, it is planning to set up a wholly owned subsidiary, which will probably be named ‘MCX Coal Exchange Limited’ or ‘MCX Coal Exchange of India Limited’.
Initially, MCX will hold 100 per cent stake in this entity, and there is a possibility of involving strategic partners later.
The proposed coal exchange will provide a standardized digital platform for physical delivery of coal at market-based prices.
The exchange said the newly formed entity will apply for necessary approvals from the Coal Controller’s Organization of India (COL) as required.
After this announcement, MCX shares were at Rs 2,881 with a rise of 0.90 percent. The stock has given returns of 19 percent in the last one month, 56 percent in the last six months and more than 140 percent in the last one year.
–IANS
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