If I may add an additional risk, please refer to the transcripts of the 1Q analyst call and subsequent IIFL organised call on Aug 3. SEBI has refused to permit January contracts. My interpretation is that
this effectively means that if the transition drags on, hedgers will be unable to hedge January future contracts on MCX (and would therefore look at alternate options - e.g. NSE). This is a big risk as this is one way liquidity can move to another exchange. See below the extract (and the management refusing to provide a view on how they will tackle this saying it is a worst case scenario)
What would have helped is if the management had clarified how serious the current ‘technical issue’ raised in courts is. Fingers crossed it is a minor hiccup. Not sure if anyone else has a more detailed overview on what the risk of the current court case is?
Disc: Invested with a full position so likely to be biased
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