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What is Happening in MCX |
Raynor
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Joined: 21 Mar 2013
Posts: 108
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Post: #1  Posted: Sat Aug 03, 2013 9:00 am Post subject: What is Happening in MCX |
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| What is Happening in MCX ? can anybody share ur knowledge , so than avg joe like me can understand |
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vinay28
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Joined: 24 Dec 2010
Posts: 11748
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| Post: #2 Posted: Sat Aug 03, 2013 12:18 pm Post subject: Re: What is Happening in MCX |
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| Raynor wrote: | | What is Happening in MCX ? can anybody share ur knowledge , so than avg joe like me can understand |
I am not sure you are an average joe though you may be a tortoise! 
mcx (on NSEL, national spot exchange), which comes under ministry of consumer affairs was allowed to trade in commodities. BUT they were not allowed to trade in forward contracts. They have been doing it for quite some time. Since it's under a different ministry, it is not governed by sebi but by fmc (forward markets comission).
After fmc was formed in april this year, they found recently after obtaining info from nsel that they were issuing forward contracts and informed ministry. They have been banned hence.
Since FT owns (I think) 99% equity in it, its shares tanked. It's income contrubutes to 97% of FT's income.
Incidentally, sebi governs brokers who trade there and hence brokers with large exposure also saw their shares tank e.g. anand rathi, motilal oswal, etc.
hope this is enough for you? |
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Andre
White Belt
Joined: 06 Jun 2012
Posts: 220
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| Post: #3 Posted: Sat Aug 03, 2013 12:59 pm Post subject: Re: What is Happening in MCX |
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Hi Vinay....
Just one correction.. NSEL contributes around 50% of FT annual profit...FT last year profit was arnd 225-230 cr of which almost 127 cr is contributed by NSEL...so it is around 50%...and not 97%....
Other thing is FT has 99.99% stake in NSEL...
Now the question arise.... will FT ever be able to bring faith in NSEL for its clients...and if answer is yes then its(F) dirt cheap.....otherwise wait and watch...
Also the problem is created by FMC by issuing guidance regarding reducing the duration of the contracts...so arbitrageur stopped trading and hence liquidity evaporates..and the lost of faith.....
Regards,
| vinay28 wrote: | | Raynor wrote: | | What is Happening in MCX ? can anybody share ur knowledge , so than avg joe like me can understand |
I am not sure you are an average joe though you may be a tortoise!
mcx (on NSEL, national spot exchange), which comes under ministry of consumer affairs was allowed to trade in commodities. BUT they were not allowed to trade in forward contracts. They have been doing it for quite some time. Since it's under a different ministry, it is not governed by sebi but by fmc (forward markets comission).
After fmc was formed in april this year, they found recently after obtaining info from nsel that they were issuing forward contracts and informed ministry. They have been banned hence.
Since FT owns (I think) 99% equity in it, its shares tanked. It's income contrubutes to 97% of FT's income.
Incidentally, sebi governs brokers who trade there and hence brokers with large exposure also saw their shares tank e.g. anand rathi, motilal oswal, etc.
hope this is enough for you? |
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