MCX Share Price Tumbles as SEBI Halts Commodity Derivative Platform Launch
Surprisingly, after the Securities and Exchange Board of India (SEBI) halted the launch of its Commodity Derivative Platform (CDP), Multi Commodity Exchange (MCX) saw a dramatic decrease in the price of its shares during the morning session. Within minutes of the stock market opening, the shares fell from a modest opening price of 1,970 per share to 1,913.25 per share, representing an almost 9% decline from Thursday’s closing price of 2,096.55.
MCX previously gained notoriety on October 3, 2023, when it announced the introduction of its Commodity Derivative Platform. As a result, on Thursday’s trading session, its share price soared to a new all-time high of 2,114.40 a share. A practice session was also planned for October 2, 2023, by the exchange.
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Unexpected Intervention by SEBI:
But on Friday morning, when market watchdog SEBI ordered MCX to postpone its CDP launch, things took an unexpected turn. When putting the restriction on MCX’s CDP debut, SEBI cited “technical issues.”
SEBI Applauds MCX share price for its Efforts:
“As per Regulation 30 read with Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements), Regulations, 2015, please note that SEBI has informed about its letter dated September 27, 2023, from Chennai Financial Markets and Accountability (CFMA), by an email dated September 28, 2023,” said MCX in response to SEBI’s ban. It should be mentioned that the Hon’ble High Court of Madras is now hearing the CFMA’s writ petitions over CDP. Since there are technical concerns with the situation, SEBI has stated that the Technical Advisory Committee of SEBI will discuss them. The same will soon be scheduled. SEBI has counseled the Exchange to maintain the anticipated Go-Live of CDP in abeyance.
 The Resilience of MCX:
“However, MCX Share Price promised that it will continue to use platforms provided by Tata Consultancy Services (TCS) to schedule sample sessions.
The Technological Challenge Is Not New:
MCX Share Price has previously encountered difficulties implementing new technological platforms. Technical difficulties hindered MCX’s earlier attempts, which necessitated renegotiations with 63 Moons Technologies. In June of this year, MCX and 63 Moons renewed their agreement, ensuring the platform through December 2023. The cost of the renewal was 125 crores, or 250 crores for the time period of July to December 2023.
 Conclusion:
In light of recent developments, MCX Share Price has decided to postpone its planned CDP launch until the technical difficulties have been resolved. The conclusion of SEBI’s Technical Advisory Committee meeting, which will be crucial in determining the future of MCX’s commodity derivative platform, and any additional updates will be closely watched by the market.
