Multi Commodity Exchange (MCX) shares dipped on Friday after the Securities and Exchange Board of India (SEBI) asked the company to postpone the launch of its new commodity derivatives platform (CDP) powered by Tata Consultancy Services (TCS) planned for next week. 

The intervention from the regulator comes as Chennai Financial Markets and Accountability (CFMA), an investor group, raised concerns over the platform’s technical readiness in a letter dated September 27. CFMA President Manoj Sheth said that MCX had conducted only mock testing of the new platform, not parallel testing as required by law. 

The market watchdog acknowledged CFMA’s letter and said it will discuss the matter in its technical advisory committee meeting shortly. 

MCX has been advised to keep the proposed Go-Live of CDP in abeyance. MCX will continue conducting mock tests on CDP until further instructions regarding the matter from SEBI.

Shares of MCX closed at Rs 2,053.00, 2.08% lower than the last closing price on the National Stock Exchange (NSE). The stock plunged 8.74% to hit an intraday low of Rs 1,913.25. 

MCX extended the software support deal with 63 Moons Technologies in June 2023 due to further delay in the delivery of the trading software by TCS. The commodity exchange announced earlier this week that, after several delays, its new TCS platform would go live on October 3.

After SEBI postponed MCX’s CDP launch, shares of 63 Moons also saw a surge. The scrip jumped 5% to an intraday high of Rs 288.45 before settling 1.87% higher from the previous close at Rs 279.90.