Definitely worth investing. The exchange has created and grown new product categories in the market. Though one would rather discredit them than belive their 2000 members / 100k TWS claims if one were to count only liquid/ regularly used terminals/memberships, the exchange will be able to absorb all new capital in retail and quasi institutional demand FTIL thankfully will not be subscribing the exchange share again having lived with 80% of the stake and so many unfortunate warrants issued to hoodwink regulatory limits of 5% per promoter should all be extinuguished as well.

It has more than 85% of the Indian commodity market share with only a few contracts traded on NCDEX. Most commodities are completely split to one exchange and both Gold and Oil and for some time even the currencies business were exclusively liquid on MCX

6.427 mln shares are bing issued at the top end leaving 2.2 mln reytail and 3 mln QIP investors locked in for the ride unless there is a day 1 pop over the intimidating top end of the range at 1,032

Though some mandatory innovation mayb e forced on to MCX by market forces, it is unlikely to make further Technology infrastructure investments till our markets get the depth needed to bid up business volumes beyond the Cash derivatives markets with Nifty and Sensex holding most of the volumes, restricting traading in individual stocks ( except for futures that are the FOTD) 

Also , including verbatim, their own comment on regulation

Failure to amend the The Forward Contracts Regulation, Act 1952 (FCRA) in a timely

manner may have adverse affect on its operation: The proposed amendments to the

FCRA have been made to strengthen the powers of FMC, permit trading in options and

derivatives, demutualization of existing bourses and setting up of a separate clearing

corporation. If such measures are not brought into force in a timely manner, and its

inability to introduce new products on the Exchange and failure to implement its growth

strategy could adversely affect the result of the company.

The struggle continues, and it is no longer even admissible to work in the vast sector of investment banking and capital markets with the current defocus in world markets and ht to Financial business ROE , the advantages in India Isle, remaining temorary mounds till a faster depreciation of the curency wipes off the effort.

2011 first half volume of 127 mln contracts despite the 40% growth over the year is already behind Shanghai and ICE and CME (352 mln contracts) have a much better range, depth and liquidity

PAT of 2.2 bln in INR 4 bln of income.

The retail float post issue is still just 13% and corp governance issues are likely to return.   

 

Posted via email from The India Investment Post