Multi-Commodity Exchange of India starts process of offering DMA to FPIs

The Multi-Commodity Exchange of India (MCX) has started the process of offering direct market access (DMA) to the foreign portfolio investors (FPIs) registered with the market regulator. 
 

In May 2023, the Securities and Exchange Board of India (Sebi) had issued the circular allowing DMA to FPIs in Exchange Traded Com-modity Derivatives (ETCDs). 
 

The DMA facility allows brokers to provide direct trading terminals to their clients.
 

“All DMA orders shall be routed to the exchange trading system through the broker’s trading system,” MCX said in a circular issued on Wednesday. 
 

The broker’s server routing DMA orders to the exchange trading system shall be located in India, the circular added. 

Brokers will have to seek approval of the exchange before providing the facility.