Shares of Financial Technologies (India) Ltd and Multi Commodity Exchange of India today saw robust buying, soaring as much as 28.6 per cent, after market regulator Sebi renewed the licence of MCX Stock Exchange for a period of one year from September 16.
FTIL's scrip rose sharply by 28.58 per cent to Rs 236.40, while that of Multi Commodity Exchange of India Ltd (MCX) jumped 4.99 per cent to Rs 482.70 on the BSE.
As the NSEL crisis continues to deepen, its group entity MCX Stock Exchange was asked by market regulator Sebi yesterday to strengthen its governance structure to continue to remain a recognised bourse.
While renewing MCX-SX recognition for a period of one year, commencing from September 16, Sebi also asked MCX-SX Ltd to constitute a committee of two independent directors and 3 institutional investor nominees to oversee key business decisions, policy matters and appointments of top management.
Similar directions were also issued to MCX-SX Clearing Corporation Limited (MCX-SXCCL), a subsidiary of MCX-SX.
MCX-SX Ltd is promoted by Financial Technologies Group, which also runs spot commodity exchange National Spot Exchange Limited (NSEL), which has been engulfed in a crisis when it stopped trading on all contracts on July 31 following government directives. It raised concerns about the possible default of Rs 5,500 crore to investors.
MCX-SX had got a licence from Sebi to operate as a stock exchange in September last year and this permit was about to expire on September 15, 2013.
While Sebi has decided to renew its licence despite continuing troubles at NSEL, which has defaulted on at least four payments so far, the regulator had asked MCX-SX to work towards strengthening its governance practices.
MCX-SX offers electronic platform for trading in Capital Market, Futures & Options, Currency Derivatives and Debt Market segments.