Stock price of commodity bourse Multi Commodity Exchange of India Ltd (MCX) surged as much as 8.88% on Monday, after the Reserve Bank of India (RBI) removed restriction imposed on overseas investors on buying equity shares in MCX.
Intraday, MCX stock climbed 8.88% to Rs.934 on BSE, before closing 6.85% higher at Rs.916.60. On NSE, the scrip jumped 8.97% to Rs.934, before closing 6.95% higher at Rs.916.65.
The aggregate share holdings in MCX by Foreign Institutional Investors/Registered Foreign Portfolios Investors have gone below the prescribed threshold caution limit stipulated under the extant FDI policy, RBI said in a notification on 20 May. Hence, the restrictions placed on the purchase of shares of the company are withdrawn with immediate effect, it had said. As per data available on BSE, public holding in the company was 99.64% as of March 2016, while the rest 0.36% was held by others.