Shares of the listed commodity exchange crashed 7.7 percent after receiving notice from SEBI to temporarily suspend launch of the new platform.
At 11:20, 29th september shares of Multi Commodity Exchange (MCX) were trading at Rs. 1934 per share which is 7.7 percent down from previous close price of 2096.55 per share.
Such negative sentiment are observed after the company, through a regulatory filing with the Bombay stock exchange (BSE) dated 29th september, informed that SEBI has advised the MCX to temporarily suspend the launch of Commodity Derivative Platform (CDP) which was set to launch on 3rd october 2023.
Regulator informed the reason for the temporary suspension of Commodity Derivative Platform (CDP) is that the matter involves technical issues that would be discussed in the SEBI technical advisory committee meeting.
Having a walkthrough at financial reports, the company’s revenue has increased by 8.9 percent from 133.75 crore in Q4FY23 to 145.77 crore in Q1FY24. Moreover, the company’s profit has increased by 260 percent from 5.45 crore in Q4FY23 to 19.66 crore in Q1FY24.
Looking at the financial ratios, Company reported return on equity (ROE) of 7.42 percent and return on capital employed (ROCE) of 9.51 percent in the last financial year.
Multi Commodity Exchange (MCX) is India’s first listed exchange that facilitates online trading of commodity derivatives transactions, etc.
The company holds over 96.67 percent of the market share in commodity Futures turnover and roughly 99.72 percent in commodity Options. It has a complete monopoly on the trading of precious metals, energy, and base metals.
Written by Vinit Israni
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