MCX Stock Gains on Reform Buzz
Shares of the Multi Commodity Exchange of India (MCX) rose 3.66 percent to ₹7930.85 on Wednesday after reports revealed that the Securities and Exchange Board of India (SEBI) is preparing a fresh wave of reforms for the commodity market. The announcements came during an event hosted by MCX, sending positive signals to investors and traders alike.
SEBI’s Reform Agenda
SEBI chairman Tuhin Kanta Pandey emphasized that strengthening India’s commodity derivatives market is now a top priority. The regulator is in talks with the government to permit banks, insurers, and pension funds to directly participate in commodity trading. Analysts believe that this step could significantly deepen institutional participation and enhance liquidity in the market.
Another key proposal under review is to allow foreign portfolio investors to trade in non-cash settled, non-agricultural contracts. Currently, FPIs are restricted to cash-settled instruments such as crude oil and natural gas. If approved, this change could open up broader access to bullion and base metals, bringing in more global players and boosting activity on domestic exchanges.
Compliance and Tax Reforms on the Horizon
Pandey also highlighted plans to bring commodity brokers under the Samuhik Prativedan Manch, a unified compliance reporting framework, by December 2025. This move is expected to streamline reporting, reduce duplication, and increase transparency across the ecosystem.
In addition, SEBI is working closely with the government to address Goods and Services Tax related hurdles in the physical delivery of commodities, a long-standing challenge that has restricted smoother operations for market participants.
MCX’s Market Dominance and Growth
MCX continues to hold a dominant position in the Indian commodity derivatives market with a staggering 98.8 percent share of the total value of futures contracts traded in the first quarter of FY2025-26. The exchange has been a key driver of innovation and growth in the space since becoming India’s first listed electronic commodity exchange.
On the financial front, MCX reported a consolidated net profit of ₹203.19 crore in Q1 FY26, marking an impressive 83 percent year-on-year jump. Sequentially, profits rose 50 percent, reflecting the growing demand for commodities trading in India.
Outlook for the Commodity Market
Market experts say SEBI’s proposed reforms could be transformative, expanding the scope of participants, improving liquidity, and positioning India’s commodity market as a stronger global player. With MCX at the forefront, these changes could further accelerate growth and profitability for the exchange while opening new opportunities for institutional and retail investors.
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