Thursday, March 31, 2011


MCX – India’s No. 1 Metal and Energy Exchange sets a new benchmark

of quality and transparency for Indian Exchange Industry



MCX announces filing of its DRHP and proposes listing of its shares for a more transparent and scientific price discovery process. This will enable smooth entry and exit of its shareholders and investors. Since exchanges have a cap on shareholding percentage and are widely held, listing is of paramount importance for enhanced shareholder scrutiny, accountability of management and adherence to highest level of corporate governance at par with the best exchanges in the world.

MCX has decided to have an Exchange Ombudsman for the first time in India subject to necessary approval. The former judge of Bombay High Court, Justice Kamdar has kindly agreed to be the Exchange Ombudsman. This is a pioneering step in the exchange industry.

MCX is in favour of bringing Exchanges under ‘Right To Information (RTI)’. The Exchange will work with policy makers to develop a frame work for RTI Policy for Exchanges.

MCX will continue its policy of management continuity without generating legacy by ensuring that generally no MD and CEO can continue beyond two terms. Practiced since inception, it is true institutionalization in letter and spirit and yet preventing creation of management legacy and over dependence on personalities.

Listing will not limit the benefit of exchange industry growth to handful of institutional investors. A large number of small and retail investors can share the benefits of this growing industry. They too will get an opportunity to be included in the growth story of commodity industry and India.

Quote of Mr. Lamon Rutten, MD & CEO, MCX

“At the heart of our business operations and business relationships is a remarkable level of trust and confidence that the commodity market participants and other key stakeholders have in us. We believe that for exchanges to uphold healthy competition, transparency, and be open to public scrutiny, they should be listed. The IPO will give us another opportunity to nurture this trust and confidence. Also, thanks to the policy makers, India will be the benchmark price setter for major metal and energy products from the East.

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