 "Significant decline in value of MSEI warrants pushes MCX into red")
Multi Commodity Exchange of India (MCX), India’s largest commodity futures trading platform, has posted a net loss of Rs 34.2 crore on a standalone basis for the April to June period of 2015-16 against a net profit of Rs 23.4 crore posted in the corresponding quarter last year.
The total income from operations, however, rose to Rs 56.2 crore for the June quarter of 2015-16 against Rs 51.6 crore for the same quarter last year.
The exchange turned into red mainly because of Rs 59.4-crore loss incurred for its equity share holding in Metropolitan Stock Exchange of India (MSEI) formerly known as MCX Stock Exchange.
MCX alongwith its anchor investor Financial Technologies (India), an erstwhile anchor investor had provided an undertaking to SEBI to dilute holding (equity and warrants) in MSEI within permissible limit and time prescribed i.e. June 19, 2015. But, because of unfavourable market conditions, these equity and warrants valued at its face value of Rs 1 and therefore, brought down the carrying cost by Rs 42.59 crore.
Apart from the above, carrying costs of equity stake was also brought down significantly.
The board pursuant to the approval of Forward Markets Commission co-opted Govinda Rao Marapalli as FMC approved independent director.
The total income from operations, however, rose to Rs 56.2 crore for the June quarter of 2015-16 against Rs 51.6 crore for the same quarter last year.
The exchange turned into red mainly because of Rs 59.4-crore loss incurred for its equity share holding in Metropolitan Stock Exchange of India (MSEI) formerly known as MCX Stock Exchange.
MCX alongwith its anchor investor Financial Technologies (India), an erstwhile anchor investor had provided an undertaking to SEBI to dilute holding (equity and warrants) in MSEI within permissible limit and time prescribed i.e. June 19, 2015. But, because of unfavourable market conditions, these equity and warrants valued at its face value of Rs 1 and therefore, brought down the carrying cost by Rs 42.59 crore.
Apart from the above, carrying costs of equity stake was also brought down significantly.
The board pursuant to the approval of Forward Markets Commission co-opted Govinda Rao Marapalli as FMC approved independent director.