The Multi Commodity Exchange of India (MCX) will issue one bonus share for every four shares held.

To meet the Forwards Market Commission guidelines, MCX has to raise its share capital to Rs 50 crore by March 31. MCX, which has reserves of about Rs 600 crore, has a paid-up capital of Rs 40 crore and by issue of the bonus shares, the reserves would come down by Rs 10 crore and the share capital raised by Rs 10 crore to Rs 50 crore, sources said.

MCX has called for an Extraordinary General Meeting (EGM) of its shareholders on March 15 to approve the bonus issue.

Promoted by Financial Technologies (India), MCX's equity partners include NYSE Euronext, State Bank of India and its associates (SBI), National Bank for Agriculture and Rural Development, National Stock Exchange of India, SBI Life Insurance Co, Bank of India, Bank of Baroda, Union Bank of India, Corporation Bank, Canara Bank, HDFC Bank, Fid Fund (Mauritius) - an affiliate of Fidelity International, ICICI Ventures, IL&FS, Kotak Group, Citi Group and Merrill Lynch.

MCX offers more than 40 commodities across various segments such as bullion, ferrous and non-ferrous metals, and a number of agri-commodities on its platform. Its turnover is said to be the world's largest futures exchange in silver, the second largest in gold, copper and natural gas and the third largest in crude oil futures.

Started in 2003, MCX currently holds a market share of over 80 per cent of the Indian commodity futures market, and has over 2,000 registered members operating through one lakh trader work stations, across the country.

Last week, the Forward Markets Commission said the turnover at the commodity futures market crossed the Rs 100 lakh crore-mark till February 15 this fiscal, on the back of futures trading in bullion and energy items. The turnover was Rs 66.24 lakh crore in the corresponding period last year.

Related Topics