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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 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 the technology company and another for the spot exchange, the sources told BusinessLine .
MCX was supported by technology and trading solutions from 63 moons 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 setting up its own tech arm. It indicates that the exchange may sever its last of ties with the 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.
FinMin official’s visit
In December, the government will issue its policy and regulatory framework for spot exchanges in India. An Officer on Special Duty (OSD) dealing mainly with FDI and banking reforms in the Finance 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 (FIR) against the exchange before issuing licences, the sources said. The FIR which was filed in March this year was 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.
MCX did not respond to an email query on issues to be taken up during the board meet. The board may also discuss setting up a panel for forensic investigation into the exchange’s data sharing pact with Indira Gandhi Institute of Development Research, following a complaint by a whistle-blower.
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