Axis Securities (ASL), one of the leading stock broking houses and a subsidiary of Axis Bank, has become the first bank subsidiary to introduce to their customers trading in commodity derivatives on the Multi Commodity Exchange of India (MCX), India's No. 1 commodity exchange, which has a market share of over 90 per cent. The trading will be introduced under its flagship brand-Axis Direct (www.axisdirect.in).
This is a major development ever since the Hon'ble Finance Minister Arun Jaitley in his Budget 2017-18 proposed the further integration of commodities and securities derivative markets by integrating the participants, brokers and operational frameworks. Later, the Securities and Exchange Board of India in September 2017 allowed brokers of stocks and commodity derivatives market to do both businesses under a single entity. After Reserve Bank of India (RBI) permitted bank subsidiaries to provide broking services in commodities derivatives, ASL became the first ever bank sponsored broking entity to take membership of a commodity exchange.
With this launch, Axis Direct has expanded its overall investment product bouquet that currently includes Equities, Mutual Funds, SIPs, IPOs, Derivatives, Bonds, NCDs, ETFs, Company Fixed Deposits and Overseas Trading. All existing and new Axis Direct customers can now trade in 29 commodity futures and 5 options contracts, covering bullion, industrial metals, energy and agricultural segments, simply through a one-time online registration process. Within 48 hours of providing the online request, the customer will be provided rights to trade in commodity derivatives. Once the commodity rights are enabled, the customer can use the same login credentials of Axis Direct and access commodities platform with streaming market watch with real-time market information.
Mrugank Paranjape, MD & CEO, MCX said, ''I am very happy that Axis Securities has become the first bank-owned broking firm to start distribution of commodity derivatives. With its large client base, supported by its huge branch network, superior research and above all, the goodwill it has generated among the public, I am sure Axis Securities will enable commodity derivatives trading reach to a very large number of potential customers across the country. Such an access to the hitherto excluded class of participants will surely enhance the breadth and depth of the market.''
Shares of the bank gained Rs 9.4, or 1.47%, to trade at Rs 649.00. The total volume of shares traded was 247,901 at the BSE (12.27 p.m., Monday).
