Currently, MCX enjoys market leadership with a share of over 75% in volumes traded on commodities exchanges in India
The country's top commodity bourse Multi Commodity Exchange has received the permission from commodity market regulator Forward Markets Commission (FMC) for launching the initial public offer (IPO), reports PTI.
"The Commission on 22 April 2010 has granted the permission/no objection certificate (NOC) to MCX for its proposed IPO subject to certain conditions," FMC said in a statement.
Two years back, MCX had got the NOC for launching the IPO from the regulator, after which the exchange sought the approval from the capital market regulator Securities and Exchange Board of India (SEBI). However, in August 2008, the exchange decided to scrap its IPO plan to sell six million shares as turbulent stock markets sapped investors' appetite for risk.
As the NOC expired recently, the exchange had applied for its renewal. Under FMC rule, it is mandatory for commodity exchanges to get NOC from the regulator for launching its IPO.
Asked if MCX would file fresh prospectus, the exchange's spokesperson told PTI, "We have not filed any draft red-herring prospectus (DRHP) and have not finalised any timeframe. So we cannot comment now."
Currently, MCX enjoys market leadership with a share of over 75% in volumes traded on commodities exchanges in India. The turnover of the exchange was Rs6,03,455 crore in April.
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