Shares of commodity bourse Multi Commodity Exchange surged over 8 per cent to hit fresh 52-week high of Rs 1,289 after Arun Jaitly in his Budget speech proposed to merge Forward Market Commission (FMC) with Sebi.
Following the news shares of MCX came in high demand as the proposed move will lead to crackdown on 'dabba' or illegal trading in commodities.
Prevalent across Gujarat and many other parts of the country, 'dabba' trading primarily involves illicit off-market trades in many commodities, while stocks are also traded in this illegal market.
In commodities alone, the overall 'dabba' trading clocks turnover to the tune of Rs 50,000-1,00,000 crore a day, while the volumes for illicit stock trades outside the purview of stock exchanges also run into tens of thousands of crores.
A crackdown on dabba trading after this proposed move will boost the trading volumes on the MCX which will inturn boost the profitability of the exchange.
MCX ended 2.8 per cent higher at Rs 1,253. Trading volumes on the counter surged on the BSE as 9.8 lakh shares changed hands on the BSE compared to its two week average of 5.1 lakh shares.
(With PTI inputs)