Shares of Multi Commodity Exchange of India (MCX) appeared to plunge over 80% today, sparking headlines of a dramatic fall. However, investors need not panic, as the sharp decline was purely a technical adjustment following the company’s stock split.

The MCX shares, which closed at ₹10,989 on January 1, opened at around ₹2,228 today on the BSE. On an adjusted basis, MCX shares actually rose as much as 3.6% to hit a fresh 52-week high of ₹2,277, while its market capitalisation climbed to ₹56,650 crore.

In September last year, MCX announced a 1:5 stock split, dividing each equity share with a face value of ₹10 into five shares of ₹2 each. The company also fixed January 2, 2026, as the record date to determine shareholders eligible for the split. Only those holding MCX shares as of the record date were entitled to receive the additional shares.

The board of the company had proposed the stock split to boost liquidity and make shares more affordable to a wider set of investors. Although the number of outstanding shares increases, the company’s market capitalisation stays the same, leaving investor wealth unaffected.

Over the past year, MCX has significantly outperformed the market, surging 80% compared with a 7% gain in the BSE Sensex. The stock has also climbed 158% from its 52-week low of ₹882, which it hit on March 11, 2025.

The recent rally in MCX shares was triggered after SEBI Chairman Tuhin Kanta Pandey signalled reforms to enhance institutional participation in the commodity derivatives market. Speaking at the 11th Convention of the Commodity Participants Association of India last month, Pandey highlighted SEBI’s efforts to collaborate with the RBI and IRDAI to enable broader participation of banks and insurance companies in the commodity derivatives space. “Enhanced institutional participation will bring in higher liquidity, making the market more attractive for hedging,” he said.

The SEBI chief also said that they will continue to engage with the government to resolve GST-related issues for participants who wish to receive or deliver commodities through the exchange platform. The Samuhik Prativedan Manch (Common Reporting Portal) has been implemented to ease reporting requirements for stock brokers, with the facility to extend this portal to commodity-only brokers under development.

Pandey also pointed out the range of commodities available for trading—104 distinct commodities and their variants have been notified for trading on recognised stock exchanges. A diverse range of 34 unique commodities is available for trading—23 agricultural commodities and 11 non-agricultural commodities. The annual notional turnover in FY 2024-25 reached ₹580 lakh crore, almost doubling from FY 2023-24. As of October 31, 2025, the notional turnover had already reached ₹628 lakh crore. The commodity derivatives markets have been under SEBI’s oversight since 2015.

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