Shares of Multi Commodity Exchange of India fell on Monday after the Securities and Exchange Board of India asked the company to pay a higher regulatory fee—based on annual turnover, considering the notional value of options contracts.
Following industry practice, the company has been paying the SEBI regulatory fee on the aggregative value of transactions, that is, on the premium (turnover) value in the case of option contracts, since their introduction during FY17–18, an exchange filing said.
MCX is currently evaluating the aforementioned letter, and if the said amount is payable, the total amount due would be approximately Rs 1.77 crore, according to the filing. This includes differential regulatory fees for the past period from FY17-18 to FY22-23—approximately Rs 1.43 crore and interest of 15% per annum on the same till date—approximately Rs 0.34 crore.
The due date of the payment is one month from the date of receipt of letter, that is, on or before May 25, 2024.
Shares of the exchange fell as much as 6.76% intraday, the lowest level since April 25. At 11:55 a.m., they pared the loss to trade 2.23% lower, compared to a 0.55% advance in the NSE Nifty 50.
The stock has risen 27.4% year-to-date and 191.22% in the last 12 months. Total traded volume so far today stood at 0.92 times its 30-day average. The relative strength index was at 62.49.
Of the 11 analysts tracking the company, six maintain a 'buy' rating, two recommend a 'hold,' and three suggest 'sell', according to Bloomberg data. The average 12-month analysts' price target implies a downside of 8.3%.
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