Multi Commodity Exchange of India (MCX) is in focus lately after the Sebi said mutual funds and portfolio management services (PMS) will be allowed into commodity derivatives soon. Mrugank M Paranjape, MD & CEO of MCX, spoke to CNBC-TV18 about the development.

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"Commodity exchanges will take off with new Sebi regulations," Paranjape said on Wednesday.

Talking further about the new development, he said, “We are very excited about the fact that over the last one year very healthy increase in the participation from the physical market, which is one side of the market and if we now get the institutional investors who are chasing longer term money and who have longer term deployment coming into the market, what this could mean is the beginning of building up of depth in the third and the fourth contract in Indian exchanges. It’s something that we all wanted to do, something which is very critical for this market and something which will happen now over the next one year.”

According to him, "arbitrage funds and exchange-traded funds (ETFs) would be the first participants from the new rules."

On the volume growth front, Paranjape said, “We have consistently maintained that business like MCX would naturally grow at nominal rate of GDP but we have said that we think this business deserves to and will grow at 15-20 percent in terms of its revenue.”

First Published:Mar 6, 2019 11:21 AM IST