Millennium Post

MCX-SX cash segment turnover crashes 44% in November

The cash segment turnover at MCX-SX sharply fell to Rs 624 crore in November from Rs 1,119 crore in October, 2013. The turnover is one of the lowest registered by MCX-SX since the Rs 5,600 crore payment crisis hit National Spot Exchange Ltd (NSEL)in July.

MCX-SX's equity derivative turnover also plunged by 20 per cent to nearly Rs 8765 crore in November from Rs 10,968 crore in the previous month.

The total volume of derivative contracts on MCX-SX declined to 2.81 lakh in November from 3.57 lakh in October. MCX-SX has seen a lot of changes in its leadership team in recent months. A new chairman has been appointed to its board and the process to appoint a new CEO is currently underway, while Sebi in September had ordered setting up of a panel to oversee key business functions and decisions of the exchange.

MCX-SX, which began functioning as a full fledged bourse in February, this year, had shown a strong growth earlier this fiscal in both its equity derivative and cash segments.

In the cash segment, the turnover had reached to over Rs 2,000 crore in May and close to Rs 3,000 crore figure in June from just Rs 33 crore in April. However, its cash turnover had began to fall in July although it had retained Rs 1,000-crore level till August before dipping to Rs 990 crore in September.

However, the bourse had shown signs of recovery by crossing the Rs 1,000-crore level mark in October.
In the equity derivative segment, the turnover had consistently gone up from Rs 6,607 crore in April to Rs 32,686 crore in July, but witnessed a dip in August and September.

The bourse' turnover stood at Rs 7,133 crore in September, 69 per cent lower than what was recorded in August before rising again in October.

MCX-SX was set up by Jignesh Shah-led Financial Technologies (India) Ltd (FTIL), which also has a near 100 per cent stake in NSEL.

Market regulator Sebi has directed MCX-SX to strengthen its corporate governance structure in wake of the NSEL crisis.

Over the recent months, MCX-SX has witnessed a string of resignations including that of Jignesh Shah and Joseph Massey from its board. On 1 November, former home secretary G K Pillai was appointed as MCX-SX's chairman and former LIC chief Thomas Mathew T became the vice-chairman, following approvals by Sebi.

Multi Commodity Exchange (MCX) and Financial Technologies together hold 9.97 per cent shareholding in MCX-SX, as on the quarter ended 30 September, 2013.

Oct fund mop-up via preferential allotments hits four-month high

NEW DELHI: Fund-raising by issuance of shares to promoters and shareholders on preferential basis hit a four-month high of Rs 3,366 crore in October.

According to the latest data released by the Securities and Exchange Board of India (Sebi), funds garnered by firms through preferential allotment route surged to Rs 3,366 crore in October after plunging to a nine-month low of Rs 926 crore in September.

The October figure has reached the highest level since June, when the funds had mopped up a total of Rs 11,878 crore through preferential allotments.

However, the number of preferential issues slipped to 31 in October from 32 in the preceding month.
With the latest capital mop-up, the cumulative mobilised amount through preferential allotment route stood at Rs 34,851 crore from 251 issuance for the first seven months of the current financial year (April-October).

‘There were 31 preferential allotments (Rs 3,366 crore) listed at BSE and NSE during October 2013 as compared to 32 preferential allotments (Rs 926 crore) in September 2013,’ Sebi said.

According to experts, the fund raising increased after new RBI governor Raghuram Rajan announced measures to boost the weakening rupee and revive economic growth.

The increase in fund-raising has coincided with the Bombay Stock Excgange’s (BSE) barometer index Sensex surging 1,785 points, (9.2 per cent) in October.

In 2012-13, companies garnered around Rs 47,000 crore, marking a sharp rise from Rs 25,709 crore
collected through preferential allotments to promoters and shareholders in the preceding fiscal. In 2010-11, companies had collected Rs 30,511 crore through preferential allotments.
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