MCX public offer likely by April to fund expansion

The Multi Commodity Exchange of India (MCX) is likely to float its initial public offer (IPO) by April.

"Proceeds from the ossie will be used to fund expansion of the exchange," said Jignesh Shah, managing director.

"The IPO would give leverage to the exchange to undertake its planned programme of inclusive expansion," Shah said refusing to divulge details of the IPO size.

The red-herring prospectus is being given final touches, following which it would be filed with the Securities and Exchange Board of India, he said.

When launched, the IPO would be the first public listing of a commodity exchange in India.

On the future plans of MCX, Shah said the exchange was looking at tie-ups with regional commodity bourses to share its expertise.

MCX has tied up with Rajkot Seeds, Oil and Bullion Merchants Association for acquiring institutional membership of the national exchange.

Following the tie-up, members of both the bourses would be able to trade on each other's platform. The Association has decided to float a separate subsidiary-Rajkot Board of Trade-for taking institutional membership of MCX.

Earlier, Kochi-based Indian Pepper and Spices Traders Association had taken institutional membership of MCX. The Kochi body floated a separate entity to get institutional trading and clearing membership.

Shah also said MCX would launch trading in intangibles once the parliament amends the Forwards Contract Regulation Act.

"We look forward to launching contracts in index trading, weather derivatives and carbon credit," Shah said.

MCX is one of the two national commodity exchanges operational in the country offering a host of futures contracts, including bullion, metals and agri commodities.