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Unperturbed by the wild false allegations, the country's largest commodity exchange MCX plans to launch index trading in three of its flagship indices iComdex Composite Index, iComdex Bullion and iComdex Base Metal.
PS Reddy, Managing Director, MCX told BusinessLine that the exchange has completed taking feedback from market participants on launching index trading on three of its indices and will be filing with SEBI soon seeking permission.
"We had discussions with market participants and taken their feedback. We are in the final stage of filing with SEBI for index trading in iComdex Composite Index, iComdex Bullion and iComdex Base Metal.
In June, SEBI allowed exchanges to launch trading in commodity futures indices and issued detailed guidelines. The constituents of the composite indices will be individual commodities.
Read more: SEBI allows futures trading in commodity indices
On allegation
On the alleged whistleblower raising serious issues on MCX operations, Reddy said “the so-called whistleblower issue is fake. There is no employee by name Charul Singh named in the letter and the issues raised in the letter are all humbug,” he said.
"I do not know the motive behind the allegations but the fact is the stock price has crashed and poor retail investors have suffered a loss. These kinds of sensational rumours are given leg-up by certain media houses practising yellow journalism," he said.
Asked whether five exchanges fighting for market share in a shallow market leading this kind of disruptions, Reddy said "I do not want to point finger at anyone but at the same time we will not take it lying down. We have already requested SEBI to investigate the issue and subsequent stock price crash."
Investors have lost ₹ 5,500 crore in market capitalisation. "We have consulted our lawyers for the future course of action. Media houses cannot publish anything based on a letter without verifying the authenticity of facts,” he said.
Talking of shallow market, Reddy said MCX is working to get more physical market participants on the platform particularly after SEBI made compulsory delivery of commodities on all contract expiry.
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