MCX Share Price Rises 4% as SEBI Chief Hints at Allowing FPIs, Banks and Pension Funds in Commodity Trade

The Multi-Commodity Exchange of India (MCX) witnessed a sharp rally on Wednesday after remarks by SEBI Chairman Tuhin Kanta Pandey stirred optimism about broader institutional participation in commodity trading.

SEBI Chairman’s Statement

As per a news report, in his address at an event hosted by MCX, SEBI Chairman Tuhin Kanta Pandey said, “We are planning to enable banks and pension funds to trade commodities… We will consider allowing FPI trading in non-agricultural commodities.”

He further added, “We will keep working towards a regulatory framework to enable prudent institutional access to these markets. A proposal to allow FPIs to trade in non-cash settled non-agricultural commodity derivative contracts is also currently under examination. We will also engage with the government to consider banks, insurance companies and pension funds to trade in these markets.”

Significance of the Proposal

MCX is India’s largest commodities bourse with nearly 90% market share in commodity derivatives trading. By allowing banks, insurance companies, pension funds and FPIs to participate, the regulator aims to boost liquidity and deepen India’s commodity markets.

MCX Share Price Performance

MCX share price jumped as much as 4.25% intraday to reach ₹7,972.00 apiece on the NSE at 11:52 AM. The stock has gained nearly 8% so far in September 2025, reflecting renewed investor enthusiasm following the regulatory comments.

Read More: SEBI Extends Settlement Scheme for Algo-Linked Brokers to October 16! 

Conclusion 

With MCX already dominating the commodity exchange space, any regulatory move to widen institutional access is likely to further consolidate its position in the market. The exchange, which offers trading across bullion, energy, metals and agricultural commodities, stands at the centre of this potential transformation in India’s commodity landscape.

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