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On December 7, the MCX board will take up proposals to set up a technology company on the lines of one promoted by the National Stock Exchange (NSE) and the BSE and two separate trading platforms for spot bullion and energy.
The board is likely to approve setting up of two separate subsidiaries, one for technology company and another for spot exchange, the sources told Business Line.
MCX was supported by technology and trading solutions from 63Moons Technologies, which in its earlier avatar as Financial Technologies was the founder promoter of the bourse. It is for the first time in nearly two decades, after it was founded that MCX, a leader in commodity derivatives, is mulling to set up its own tech arm. It indicates the exchange may sever its last of ties with former founder promoter, the sources say.
There was a binding agreement between FT and MCX for technology, which ended in 2014 after a decade long partnership. But it is only now that MCX will move for its wholly owned tech set-up.
In December government will issue its policy and regulatory framework with regard to spot exchanges in India. An officer on special duty dealing mainly with FDI and banking reforms in the fiancé ministry visited MCX and NSE to hold discussions about the spot exchange, it is learnt. However, the government is likely to first take a legal opinion on a pending CBI first information report against the exchange before issuing licences, the sources said. The FIR as filed in March this year and it is about discrepancies’ in setting up of the exchange.
NSEL, which was hit by a scam in 2013 and had to be shut down, was the only spot exchange operating under special permission from the Ministry of Consumer Affairs. A spot exchange has a potential to bring the entire dealing into bullion in Indian on an exchange platform.
MCX did not respond to an email query with regard to issues to be taken up in its upcoming board meet. The board may also discuss on setting up of forensic investigation into exchange’s data sharing pact with Indira Gandhi Institute of Development Research, following complaint by a whistle-blower.
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