Multi Commodity Exchange (MCX) is India‚Äôs largest commodity futures exchange. Out of the four major subcategories of commodity futures trading, MCX clearly dominates three segments of precious metals, industrial metals, and oil. NCDEX has a leadership position in Agri commodity futures. 

However, one needs to be cautious about a few things. The volumes on the exchange have dipped post the introduction of CTT in 2013 and are yet to get back to high levels. This is a negative for the stock. Also, now the NSE and the BSE have also been permitted into commodity trading and it has already been launched. While MCX has the first-mover advantage, both the exchanges with their experience, institutional clout and their global best practices are going to give MCX a run for its money. Things are not going to be very easy going ahead for the company. Lastly, the overhang of the NSEL fiasco is still on the group. Most of the original promoters have been barred from any form of participation in the commodity markets and Rs.5600 crore scam pertaining to NSEL is yet to be resolved. 

While one can argue that ring-fencing is done, it is best to be cautious about such stocks. You can take small positions but keep a strict stop loss because this stock has the tendency to be extremely volatile.