Shares of commodity exchange Multi Commodity Exchange of India (MCX) surged as much as 4 percent on Wednesday after Sebi approved a proposal to allow foreign investors to trade in commodity derivatives market.

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Mrugank Paranjape, MD and CEO of MCX, spoke to CNBC-TV18 about the recent development and its impact on the company.

“In line with the developments that we have seen over the last couple of years, this is one more step in that right direction of one expanding the Indian commodity derivatives market and deepening it with a broader participation. We saw that with Sebi allowing AIFs last year and we have seen this as a next step. To me, this is one of those many things that we all wanted to do together to make this a very large market and that is why it is a great step, a big step in the right direction,” Paranjape said.

“I think in the long run we believe, Indian markets have a huge potential. We don’t give specific numbers or guidance in terms of any quarter or anything but we have always maintained that since the last year and this year that we see over three-four year horizon, the overall volumes and revenues for the exchange doubling in terms of the size and this will be one big contributor to that increase,” he said.

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