MCX hopeful of amendment in FCRA soon

Posted By: Staff
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MCX hopeful of amendment in FCRA
Ahmedabad, Feb 17 (PTI) Managing Director and CEO of the Multi Commodity Exchange of India Ltd (MCX), Lamon Rutten today expressed hope that the proposed amendment in Forward Contract Regulation Act (FCRA), allowing trading of options and indices in commodities, be passed by the Parliament soon.

A parliamentary standing committee, reviewing amendments to the FCRA, has already submitted its report, permitting index derivatives (futures and options) and options in individual commodities and has recommended independence and power to market regulator Forward Market Commission (FMC).

"We hope that Parliament will approve recommendations of the standing committee that allows trading of options and indices in commodities," Rutten told mediapersons while announcing the country's largest commodity bourse's Initial Public Offer (IPO) that will hit the market on February 22 and close on February 24.

The amendment in the FCRA would allow us expand our product range by offering trading in real estate indices and futures and options on rainfall based-products, he said.

Rutten said that they have tie up with firms providing weather and real estate related data. He said that MCX has future strategies in place and would continue to expand its network by providing innovative products and introducing new revenue line like data vending.

MCX, which aims to raise Rs 663 crore, has set a price band of Rs 860 to Rs 1,032 a share for the IPO. The offer would comprise of sale of about 64.27 lakh shares, accounting for a 12.6 per cent stakes in the company. This would include 2.5 lakh shares reserved for employees.


Read more about: mcx, shares, ipo
Story first published: Friday, February 17, 2012, 18:45 [IST]
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