MCX mulls IPO again

With the Centre all set to come out with specific guidelines on foreign direct investment in commodity exchanges soon, the Multi Commodity Exchange may finally go for its IPO plan.

The exchange, promoted by Financial Technologies (India) Limited, had dropped its IPO plan in 2006.

The Cabinet Committee of Economic Affairs is all set to announce the guidelines for FDI in commodity exchanges. Following this, the Forward Markets Commission is expected to submit the proposal for ownership structure of

exchanges before the Union ministry of consumer affairs.

MCX submitted a draft for the IPO before Sebi in March 2006 and received the approval in June 2006. The issue size was pegged at 50 lakh shares.

While everything was perfectly in order, a Securities and Exchange Board of India regulation towards de-mutualisation of capital market, limiting the stake-holding of a single entity in the stock market to five per cent, came. Then, a debate broke out on the ownership pattern of commodity exchanges and FDI in exchanges.