Bombay Bullion Association eyes stake in MCX, shares gain

Shares in Multi Commodity Exchange of India gained 2.4 per cent on Thursday and headed for a fourth consecutive day of gains after Bombay Bullion Association said on Wednesday it was considering buying a 5 per cent stake in the company.

India's leading bullion trade body said it was considering buying the MCX stake through a consortium led by a smaller bourse it promotes, Universal Commodity Exchange.

"Through a consortium led by Universal Commodity Exchange, we are trying to buy a 5 per cent stake in MCX. The value of the stake would be around Rs 125 crore," said Mohit Kamboj, president of the Bombay Bullion Association told reporters on Wednesday.

Traders also see synergies between MCX and Bombay bullion Association considering most of MCX volumes were coming in from bullion trades in 2013.

MCX shares gained 8.8 per cent over the previous three sessions.

The UCX's offer comes after India's commodity markets last month ordered major shareholder Financial Technologies (India) Ltd to cut its stake to 2 per cent or less after calling the company not "fit and proper" to run an exchange.


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