Friday, 17th March 2006 (2905 views)

Indian gold and commodities bourse Multi Commodity Exchange (MCX) has announced plans to list on the stock exchange.

In a move that could value the company at $650 million, MCX's initial public offering (IPO) would make the Mumbai-based outfit the first Indian bourse to float.

The IPO will be performed some time in March or April, enabling MCX to continue its prolific growth spurt.

The bourse now boasts a daily turnover of $1.5 billion, earning it a reputation as India's dominant hub for gold, silver and other commodities.

Demand for gold trading in India has rocketed for two reasons, according to the Financial Times.

Firstly, exchange-based commodities trading was liberalised three years ago, paving the way for the emergence of new bourses.

Pent up demand for commodity risk-management instruments in the agricultural sector has also fuelled demand.

 

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