MCX chief Mrugank Paranjape focusing on product innovation and launch of agriculture products
Mrugank Paranjape, taking the baton from PK Singhal, is focusing on product innovation and the launch of agriculture products at the Multi Commodities Exchange (MCX). He leads the way on the long due growth opportunities at the Exchange, as the Managing Director and CEO.
These operational upgrades are announced in the wake of upcoming merger of erstwhile Forward Markets Commission (FMC) with the Securities and Exchange Board of India (SEBI). MCX awaits white flag from the market regulator, to launch options and indices for commodities.
The Finance Ministry is quite in favour of allowing trading of new products in the commodities derivatives space. The market sentiment of introducing trading options in non-agricultural commodities is also positive.
The MCX still continues its tread with Financial Technologies (India) Ltd (FTIL), also founded by the commodities exchange pioneer and innovator Jignesh Shah.
Mrugank Paranjape said, “It was a challenge but I believe that this space and platform has great scope for growth. The challenges that the exchange was facing since July 2013 following imposition of Commodity Transaction Tax (CTT), payment crisis at NSEL and exit of several employees in the wake of a forensic audit of the exchange’s operations, are over, and the exchange is at a solid footing.”
SEBI committee on commodities, in-tone with the Finance Ministry’s recommendations finds launch of options and indices for commodities as a welcome step. Paranjape envisions of undertaking currency transactions at the MCX, provided it gains requisite clearances from the regulator.
He further adds, “SEBI has given us three years to set up a clearing corporation. However, we believe that it is an essential requirement for managing risks and we are speeding up the process of setting up one”.
It is important to observe that SEBI post its merger with FMC, allowed three years time to the exchanges to meet the regulatory requirements.