MCX has informed the stock exchanges about a significant income tax demand notice received by its wholly owned subsidiary, Multi Commodity Exchange Clearing Corporation Limited (MCXCCL). The disclosure was made under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Tax Demand Details

MCXCCL received a Notice of Demand dated March 28, 2026, from the Assessment Unit of the Income Tax Department for Assessment Year 2024-25. The notice was issued under section 156 of the Income-Tax Act, 1961, with reference to an Assessment Order under section 143(3) of the same act.

Nature of Dispute

The income tax demand notice is specifically related to the disallowance of contributions made by MCXCCL to its Core Settlement Guarantee Fund. This disallowance by the tax authorities has resulted in the substantial demand of nearly ₹10 crore against the subsidiary.

Company's Response and Impact Assessment

MCXCCL has indicated that it is in the process of filing an appeal against the assessment order and the resulting demand notice. The company has provided a clear assessment of the potential impact on its operations and financial position.

Regulatory Compliance

The disclosure was made in compliance with SEBI regulations, specifically under Regulation 30 of SEBI LODR Regulations, read with the SEBI Master Circular dated January 30, 2026. MCX has also indicated that this information will be hosted on the company's official website at www.mcxindia.com for public access.

The company has maintained that while the financial impact is quantifiable to the extent of the demand amount, there are no operational disruptions expected from this development. The subsidiary's plan to challenge the assessment order through the appellate process demonstrates the company's intention to contest the tax authorities' position on the Core Settlement Guarantee Fund contributions.

MCX has received a buy rating from HDFC Securities with a target price of Rs 2950, supported by strong operational performance across multiple business segments. The brokerage firm has highlighted several key growth drivers that underpin the exchange's robust earnings outlook.

Strong Options Market Performance

The exchange has demonstrated exceptional growth in its options segment, which serves as a primary catalyst for the positive rating. The options business has recorded impressive metrics that reflect the platform's expanding market presence.

Client Base and Market Dynamics

The exchange has benefited from favorable market conditions and expanding client participation. Higher crude oil volatility has contributed to increased trading activity, while the platform continues to attract new participants.

Key operational highlights include:

• Active client base growth of 62% year-on-year
• Strong contribution from bullion trading segment
• Enhanced earnings visibility supported by diversified revenue streams

Market Position and Outlook

HDFC Securities' analysis emphasizes the exchange's ability to capitalize on commodity market volatility and growing investor interest in derivative products. The combination of rising premium average daily turnover value and sustained client acquisition demonstrates the platform's competitive positioning in India's commodity trading landscape.

The target price of Rs 2950 reflects confidence in the exchange's operational execution and market expansion strategy, with multiple growth drivers supporting long-term earnings potential.