Multi Commodity Exchange of India Limited ($MCX)

Ladies and gentlemen, good day, and welcome to the Multi Commodity Exchange of India Limited Q4 FY '26 Earnings Conference Call. Joining us on the call are Ms. Praveena Rai, Managing Director and Chief Executive Officer, MCX; Mr. Rishi Nathany, Managing Director and Chief Executive Officer, Multi Commodity Exchange Clearing Corporation Limited; Mr. Chandresh Shah, Chief Financial Officer, MCX; and Mr. Manoj Jain, Chief Operating Officer, MCX. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Ms. Praveena Rai, MD and CEO, MCX. Thank you, and over to you, ma'am.

Thank you very much, and good evening, everybody. It's wonderful to be here. Warm welcome to all the participants joining us for the call. It's been a good year with good results, and I'm very pleased to report this. Very exceptional year, building strong momentum that we have seen in earlier quarters, and we've had a robust close with the last quarter as well. This performance reflects strength across our volumes, the product innovation as well as market participation. And it reinforces the relevance of commodity derivatives in India's financial ecosystem. Now for this quarter, we have delivered a strong performance. There is growth across all key financial parameters. There is improvement in trading activity as well as participation across all our segments. During the year, we navigated periods of high volatility and challenging market conditions across multiple commodities, including potential delivery risks which were all very strongly, rigorously and effectively managed with minimum disruption to market functioning. In fact, I would say, I call it one of our highlights of last year, that the market integrity was maintained at the highest level despite a lot of broader economic risks that came our way. For the full year FY '26, the consolidated revenue from operations more than doubled to INR 2,302 crores and this was supported by nearly 2.5x increase in the average daily turnover across both futures and options. The profit after tax crossed INR 1,300 crores and EBITDA at INR 1,774 crores, reflected both the scale benefits and the continued cost discipline. To strengthen the commodity derivatives ecosystem, we've initiated a focus drive price in India, hedge in India. This promotes and deepens hedging participation within India for SME as well as corporate hedges. Institutional and retail investors have also increasingly embraced the commodity asset class leading to broader and deeper market participation. Our product development efforts focused on contract innovation and enhanced expiry frameworks contributed to deeper liquidity as well as wider market access. Importantly, the growth we are witnessing is structural, along with taking advantage of cyclical tailwinds, increasing participation from a diverse set of market participants, improving awareness, acceptance of commodity derivatives, introducing more participants to both the hedging instrument as well as the asset class positions us well for sustained expansion. Looking forward, we are confident in our strategy positioned to capitalize the next phase of growth in India's commodity derivative market. As we scale, we are focused on the highest standards of governance, risk management and market integrity, strengthening infrastructure, continuing to invest in our technology and delivering a seamless trading experience will be top priorities. Our emphasis will be on innovation, liquidity enhancement and long-term value creation for all our stakeholders. We thank our regulators, member brokers, participants, our partners and all stakeholders, including our shareholders for their continued trust and support in MCX. So I now conclude my opening remarks and happy to take questions. We have our management team here with us as well.

[Operator Instructions] Our first question comes from the line of Shrenik Mehta from Indo Helps Wealth.

I just wanted to check regarding the statement that you made about a large part of this growth being structural. And what are the factors that you're seeing, which is helping you to say that factor, we see clearly bullions really driving most of the volumes and billion volatility is also driving a lot of this picture. If you could throw some light, it will be fantastic.

Yes. So our 2 big drivers of volume are energy and bullion. We've seen growth across both of these. While of course, bullion has had a much higher growth, and we are very happy about that, it has grown more than 4 times. The energy growth has also been good and strong over a very high base. So this really makes both of them strong consents for MCX. Now globally and in India, we see there are certain points in time when the requirement around bullion will be stronger, and there will be times when the requirements around energy will be stronger and perhaps times when both are equally important. So we do see that they both create that sort of balancing with and alongside each other. And this, along with the kind of opportunity in the Indian space, the kind of commodity markets needed to support the growth in the country, the sort of early growth teams in which the overall market is of which MCX is a large participant all create that structural foundation. There's still a lot more opportunity when it comes to what can be done, regulatory-wise, policy-wise, et cetera, et cetera. And we believe over the years, that will also play out. So yes, there is a cyclical component, but there is a deep structural component also.

Okay. So you believe really the momentum is continuing the way the trend in the last few months?

So we believe the coming year will be a strong year, exactly how each quarter will play out. Of course, we'll wait and see how the numbers are, but we believe the year will be a strong year.

[Operator Instructions] Our next question comes from the line of Devesh Agarwal from IIFL Capital.

And firstly, congratulations to the entire team for a great set of number. Ma'am, my first question would be there was a consultation paper, which talked about allowing FPIs into gold and silver contracts. So one, if there is any update you can give us? And secondly, what is the contribution that we have from FPI in the energy products that is crude oil and natural gas?

Devesh, thank you very much for the wishes. So having FPIs to participate broadly in the commodity space, going beyond the cash settle segment is certainly critical on the agenda. It's something that there has been a fair amount of debate and consultation. As you know, there's also the consultation paper that is out there. We are also contributing strongly in it. So we will, of course, wait for the results of this paper to come out. And then we will take it forward from there. Now the FPI contribution, as you know, is primarily in the energy segment because it's the cash settled segment. Our onboarding of FPIs has been strong. The pipeline is also strong. The contribution currently stands at about 2% to 3% of ADP. And within the energy segment, they are a significant contributor. I would say that they are in the double-digit contribution of energy. While at the broader MCX level, they will be at about 2% to 3%. And we see this number growing.

Right, sir -- right, ma'am. And secondly, ma'am, if hypothetically, if you were to say that regulator allows co-location in commodities, in what time we'll be able to roll out these services to the traders? What is the preparedness that we have to introduce co-location services?

If this were to get permitted by the regulator, we'll be able to take this to market fairly soon within the kind of market requirements required. So we don't think we will have -- we will not be on the back foot there.

Understood. The only reason to ask this was because the competition already offer co-location services and equities. So they are already at it. And do we also are prepared to kind of introduce it within a month or so?

Yes, Devesh, we do have our plans in place and we'll be able to activate them at short notice.

Perfect. And I had 2 accounting questions...

Sorry to interrupt Mr. Agarwal. Your next question comes from the line of Amit Chandra from HDFC Securities.

And my first question is on the increase in the UCC that we are seeing. So for the full year, it's up by 64%, and it's heartening to say this. But obviously, it is because of onboarding of some of the like discount booker or discount brokers. So is it fair to assume that the increase in the UCC in the base? Or we can see further more participation in terms of more retail clients coming and trading on to the commodities because we are -- in terms of number of people trading, we are at 35% of what it is there in equities. So -- and what is driving such a steep expansion in terms of the people who are trading on the commodities? Is it only the volatility? Or you see some active participation across -- or it is more like broad based.

So Amit, we would want to see a sort of democratic increase in participation without being overly aggressive in any one space. I think I'm quite happy with where we stand on the retail side. We don't believe that everyone who is an equity investor will end up becoming a commodity investor. So we are seeing the numbers ramp up steadily and evenly, and we will continue to retain our efforts in that growth. A lot of actions that have been taken that we have worked through the market as well, as you said, with digital members, digital brokers, looking at things like the consolidated ledger, looking at user experience of MCX trading vis-a-vis the equity markets. I think a lot of work went into that last year, and we are seeing the benefits of that. We think there is more user experience opportunity to streamline, and we continue to see interest in the retail segment. Having said that, as we look at the the numbers from the AMCs, the mutual funds and many other segments like wealth and so on, so we do believe that retail will also find these channels to start participating in the commodity market. So not all of this will be very straight. And there has been a regulatory action where there is a lot more flexibility and opportunity that mutual funds will see in the coming months. when it comes to increasing the kind of commodity exposure in their portfolios. So we think retail will participate in all these ways. And overall, we'd like to see that a broader monthly segment participation to go.

Okay. And ma'am, my second question is in terms of the product pipeline, obviously, you have mentioned last time also that we are -- we will be launching some of the metal contracts. So where we are in terms of the launch of some new products, which can further diversify our volume contribution. Plus in terms of the index options scaling up, is it only the FPI is not being allowed into noncash commodities is the only bottleneck there? Or is there some other things which are stopping the index options to scale up? And secondly, there was an article in the newspapers, which you talked about some weekly contracts also being considered in the index side. I wanted your views on that.

Yes. So I think I'll first comment on this newspaper article, and we've, in fact, put out our own response on X that misleading media information is really getting published. So I will not really comment on that. But the question that you asked on -- what is the core question?

Index option on metals.

Sorry, yes, yes, yes. On product pipeline, we do have a strong pipeline. We had a certain number of products that we wanted to look at last year, and we launched according to what we thought the market will be appropriate and taking. We are prepared with our next lot of products. And we -- again, we'll look at the suitable requirements in energy, in metals as well as other segments. Now in the -- amongst the indices, interestingly, while we did talk a lot about the BULLDEX, we found that this created a lot of interest in the future segment. And we are taking the feedback from the market and focusing our attention on futures on indices as well along with options. We will also be looking at moving further on metal deck this year. So there will be more work on the indices side as we both deepen and expand that portfolio.

Your next question comes from the line of Mitesh from Axis Capital.

Most of the questions has been answered. Just on the participation side, how have been the trends in the participations in the month of April and May so far?

Mitesh, I don't think we are commenting on this quarter. I think we'll have to take your question in the next call, but there's no dramatic cost per concern.

The next question comes from Akhilesh Bhatter from Ampersand.

Congratulations a good set of results. I have 2 questions. So first one was regarding your competitor launching multiple bullion products and energy products. in the last quarter and maybe from last year onwards. So what are we doing to sort of protect market share here.

So Akhilesh, yes, we are watching the space very closely. It is a large competitor. And yes, they have made their intention felt in the market with a lot of focus that we are placing on commodity segment. From whatever we see, our bullion numbers remain untouched when it comes to market share over the last 2 years. Some recent activity on changing expiry dates and so on in the energy segment is leading to some kind of shallow one day in a month activity. So I think it's also quite misaligned with sort of global structuring on which our contracts are based and that is required for the integrity of the contract. So at this stage, I think we don't want to be reacting and making any moves which are not cognizant with the way commodity products should operate. Being highly focused on the space, we understand the structuring of these products and what the market needs. So we will stay focused on, a, continuing to drive participation in the existing portfolio and looking at what the market needs by way of new products. So creating that awareness, bringing new participants, creating more hedges all of those core actions are in play, and I think they're keeping us in good stead.

Ma'am, one more question regarding RBI launching new lending norms for prop traders. So I just wanted to understand if you have done any sort of analysis on the sort of volumes that will be hit or maybe what sort of volumes are coming in from small prop traders versus big prop traders, if you have any numbers around that?

So the RBI lending norms, the way we see it could have a potential impact. RBI, of course, has given further extension, allowing the market to plan their mitigating factors. And we are also in touch and working with our members on the same. So there will be a certain segment of members across all segments of the trading markets, who will have some of their credit lines impacted from this.

Your next question comes from the line of Makrand from West Marmite.

I'm audible?

Yes.

Congratulations on good set of numbers. As we see a very good sequential growth in numbers of top line, I was expecting a kind of better expansion in margin, but somehow, the gross license fees and other expenses line items grew faster than the revenue. So we could not see the expected margin expansion. So can you tell me if there is any one-off in these line items or we can expect these as a normal base?

Makal, thank you. Makal, we are in growth phase, and we are looking at actions to keep the market very, very relevant and to look at how we really develop the commodity markets to meet the requirements of the industry as well as the country as we have to mature and have more sophisticated offerings available across the board. And we have to keep our technology expense, our expense on -- our investments on people. All of these elements have to be built out -- continue to be built out, to be ready to execute the plans that we have. So if you're asking whether our focus is going to be on margins in the coming months, our focus will be on efficiency. Our focus will be on ensuring that whatever we do is done in a manner that is most efficient on cost and smart. But the focus is not going to be on spending less. We have to continue to spend smart and do the right thing to be prepared for the future.

Okay. So there was no one-off items, right?

No, no.

Okay. My next question is, as you said in the first -- answering the first question, that you are expecting the momentum to be continued. But when we look at the April numbers, the volume seems to have dipped down quite a bit. So do you think that we will be able to continue the sequential momentum?

So we do believe that we will have a strong year. Now will every quarter be a big jump over the previous quarter? Perhaps not. And we do see cyclicity in our business. We have seen that year-on-year where there are some quarters that are better than other quarters. So there will be macro factors that will play out. There will be cyclicity that plays out. And I think in the broader context, we are in a strong and good place.

Your next question comes from Lavanya from UBS.

Congratulations on good set of numbers. Most of my questions are answered. Just wanted to check on some of the cost line items. Software support charges, I mean, it has been quite stable compared to the jump which we have seen last year in Q4? And second is on the SGF spends. So this time, we have taken a much higher contribution to SGF. So how should one see this trend going ahead of?

So Lavanya, this is Chandresh. So SGF spend is more to keep our reserve fund in a healthy position. So that it helps us in taking some decisions and mitigate risk. So we always maintain the SGF at a healthy level, and we'll continue to do that. And it is in line with what we see the business going up and how it is growing. And also SGF is a requirement of SEBI, and it is computed based on the formula and calculation methodology given by SEBI. And I think the other question you already answered that it is very much in line, software support.

Okay, software support charges should be stable and incremental from here? And most likely, we should see no jump in Q4. Is that something one should build in?

So yes, like ma'am explained in the previous call -- our previous caller's response. So we are into a growth phase, and we will keep investing in the business as and when that is required. The only thing is that it will be done very efficiently. So when the business requirement is there, expenses will be incurred.

Your next question comes from Vendant Agarwal from IIFL.

First of all, congrats on a great set of numbers. So I wanted to understand 2 bookkeeping numbers. So what has been the interest income on margin money for 4Q '26 and for the whole year FY '26? And I also wanted to again touch upon the expenses like we have seen a sharp jump in 4Q. So what has been the key driver behind this? So these are the 2 questions.

So this quarter, we have seen some increase in the margin money in terms of cash with the subsidiary, and that has helped in some increase in the income from that. And it is INR 22 crores in this quarter -- sorry, INR 59 crores in this quarter as against INR 22 crores of previous year.

Okay, INR 59 crores in this quarter versus INR 22 crores of last year?

Quarter 4.

Quarter 4, okay. And also if you could justify the increase in other expenses for this quarter?

I think ma'am already answered in the one of the previous response that the expenses are incurred to need our market development activities and business-related professional charges.

Your next question comes from the line of Bharat Shah from BCS Capital Idea Limited.

Hearty congratulations for very distinguish and defining results. I have 2 questions. The first one, in this really what prima facie to be renewal kind of scenario where volumes are rising rapidly. We have increased number of market intermediaries with increased number of clients through those intermediaries and our product engine is working well. And all of this is resulting into dramatic growth rates across our product lines and the businesses. In such a very positive synergy, what can go wrong, if something has to go wrong? And what can actually unravel or disturb the kind of great velocity that the Indian has acquired?

I think it's a fantastic question. And we, of course, track all risks at every stage. Certainly, operating risk is number one, and I think we've spoken in the past at length that while the market offers opportunities the ability to operate and deliver to that opportunity is really not something one takes for granted. So whether it is the platform, whether it is our surveillance, whether it is our risk management, the operations of CCL when it comes to margins and collateral, each and every element of this gets challenged when there is a high degree of uncertainty in the market. So this is a risk we are very cognizant of. I would say we spend most of our time on in addition to all the other levers that you spoke about. So I would think this is a hidden lever to add to that list. The second is certainly the competition risk, I think this question was asked. So we are cognizant that we have not had a strong competition really and have been a majority market share player how to continue to be agile on our tools, continue to innovate, sort of challenge ourselves and really be our own competitor is the best way to state that off. So certainly, that risk again holds a lot of our attention. And of course, I can go with a long list, regulatory risk, et cetera, being an MII, our entire focus on working within the compliance framework, again, something that takes a lot of our attention with a strong compliance team, our investor services and relations, et cetera, et cetera. So I think this will -- if you ask me, probably cover the top ones.

Probably now I did not mean routing or regular sales, whether management competence will be there to match the competition. Obviously, that remains an ongoing issue of vigil both within MCX as well as by the outside investors, whether there can be regulatory oversight, which can curtail the remit of the business. Obviously, some search issues will always be there in the horizon. I did not really mean things of these kinds. I mean, operational routine risk, competitive risk, these are given. I mean they have to be there for any good management to deal with and to fight on. What I meant was, for example, if you look at IEX, the Energy Exchange, out of blue, the market coupling issue as comes. And there has very clearly been the situation because the market price discovery is the key function of an exchange. And when that gets taken away, then the role of liquidity and management in order to facilitate that efficient discovery becomes commoditized. And therefore, exchange becomes commoditized. And we are seeing how IEX is struggling with that issue. If you look at, for example, in the equity market, 3 years back where the options, the share of BSE was next to nothing. I mean, it was just a shade above 0. And today, in about 3, 3.5 years, it has climbed to on an incremental basis to almost about 37%, 38%. I mean that kind of a change is truly a dramatic one. So issues which are not in the realm of recognition because when things are good and healthy, risks don't look really real, and they appear distant in the horizon. But that's actually where the risks...

Yes, sorry, in the interest of time, if you may come in. I think I get what you're saying. I think I sort of touched upon those. And I think the examples that you gave are in the realm of uncontrollable, so I think we will be unable to really comment or really react to that question.

Okay. There is nothing that you are -- no, I'm just finishing my first question. Please allow me to complete. Is there anything in the realm of recognition that you are concerned about or worried about?

We are not worried about anything.

My second and last question is...

Sorry to interrupt. Mr. Shah, may we request you to keep the questions, please, as I believe there are questions. This is not the first question.

This was the first question. I mean the context of which I read the question. If you can allow me to complete it, it will be faster.

Sir, may we request you to retain. Your next question comes from the line of Bhavya Sanghvi from Alchemy Capital.

Congratulations on a great set of numbers. Most of my questions have been answered. Just one bookkeeping question. Can you give me transaction charges for the quarter and split it up between auctions and futures?

So Bhavya, future revenue for Q4 is INR 242 crores and options revenue is INR 569 crores.

Your next question comes from the line of Subramanian, an individual investor.

Ma'am, congrats on the great set of numbers. My questions have been previously answered. Thank you so much.

Thank you.

Your next question comes from the line of Dharmesh from Balmes Capital Management.

Firstly, congratulations on the great results. My first question would be on the similar lines like previous participants have inquired about the competition. So like Bharat sir mentioned that equity exchanges are getting into not just the largest one and that one has also shown some interest in getting into the commodity side. So just wanted to check, I mean, what are the key factors or drivers that would change retailer mindset to shift from retailers or when the other traders shift from MCX to other actions? I mean what incremental do these exchanges have to offer so that we gain some market share?

Yes. Ramesh, as I said, of course, competition is critical to watch out for, and we should not take the competitive stand slightly. So as equity exchanges enter into the commodity space, there could be some natural sort of synergies they have there. However, the biggest moat really is the liquidity we have in our track. So while it may be a tad easier, not much. As I said, we've done a lot of work on user journeys and so on and so forth, and we continue to do so. So while there could be -- it could be a tad easier, the real benefit for any participant arises in the fact that they are there in a liquid exchange, they can enter and exit they required. And they benefit from the overall investing or trading activity. So I think these are critical for us, and we think these are the biggest moats that we have. But we will continue to work in this space without ignoring the fact that we should overcompensate for any experiential simplicity that may be available to users otherwise.

Understood. And last question would be again there is an article in the news report today about some regulations being realized for agri commodities. So you think that could scale up in coming year, what could be the size -- could it be as big as energy or bullion or that's a rough sense there.

Sorry, I don't think this -- there is this article, but I'm not able to comment on the backdrop to it. Of course, we are in discussions and working groups with the industry and the regulator to look at various kind of policies that the industry end market requires and agriculture is one of them. So we are participating. And I think whatever opens up in that space will be beneficial, and we will also be looking at how we play a stronger role there. I wouldn't be in a position to share more than this at this point, please.

Just jumping back to the first question. You mentioned that liquidity is the core thing that MCX has for commodity derivatives like in case of equities as well, I mean, BSE had gained within 2 years from -- I mean they had also 0 liquidity in that sense. So what may -- I mean what could go wrong in MSCI as well? I mean, just wanted to understand that. Is liquidity I mean there are, if these exchanges are coming up with more innovative products, which might be more attractive to the investors? And could the liquidity over time, I mean build up for them as well?

I think we gave our comments earlier that these are uncontrollables that we will not really be commenting on. At this stage, the commodity market, is that a fairly nascent to high-growth stage. Certain actions might take place in mature markets with different objectives. So -- but having said that, this is not a space that we can really comment on. It's not an actionable in our control.

[Operator Instructions] Our next question comes from the line of Madhukar from JPMorgan.

I'm just one question. I have one question. How comfortable are we with the SGF position right now? And what is our sort of continuing policy in terms of what percentage of transaction charges are we contributing? Have we put out that number definitely part of, yes. That's my question.

Yes. So on SGF right now, we're in a comfortable position. We have a very good cushion on SGF. And Madhukar, we have not put out any percentage or anything of transaction change for the SGF.

Got it. So is there sort of a number in terms of what volume option premium or futures that we would be comfortable with and beyond which we were required. I know some simplistic measure to know that.

So Madhukar, it's just not a function of numbers. It's also a function of volatility in the margin levels. So it's a combination of everything. So as volatility would increase or volumes would increase simultaneously and why would increase, then only with the SGF requirement increase. So it's really difficult to predict all the moving parts altogether. Having said that, we are in a very comfortable position regarding SGF. And as and when we have the requirements will plan for it.

Understood. And finally...

Sorry to interrupt Madhukar, would may we request to return to the queue for any follow-up questions, please. Next question comes from the line of Madhu Gupta from Quantum AMC.

Congratulations for a good set of numbers. I just have 2 questions. First is, what is the revenue that you've earned from the electricity derivative contract in the transaction charge, which started in FY '26, the trading of electricity derivatives? That's the first question. The second question is you recently won the license to set up a coal exchange. What is the road map there? What is the addressable market size? And how do you plan to set up the exchange and yes, if you could share some plans regarding that? Those are my 2 questions.

So electricity contracts are still in early stage at this stage rather than tracking revenue. We get the membership on boarding, trading, throughput, so on and so forth. So we are happy we've got about 50 participants from the commercial participant side and a large number of members who contribute and trade, the UCC numbers also are going up month-on-month. When it comes to coal, the coal exchange is an independent entity. It will not be part of MCX as a company. It will be a part of -- it will operate as a subsidiary. Since we are in MII under the regulatory ambit of SEBI, we required the SEBI approval to go forward in this line of business. The line of business we see is closely associated with what we do as a commodity derivatives exchange, establishing a spot market in coal, where there is a mechanism that exists. However, there is a lot of opportunity for structuring, consolidation, common platform, pan India and so on. So I think that's the opportunity we're looking at, and we are in the early stage of establishing that entity and taking it forward. At the right time, of course, the suitable regulator in that space will then form the rules, we'll have to apply and et cetera, et cetera. So there is -- there are steps left before the actual entity starts getting operational.

Your next question comes from the line of Deepak Ajmera from GE India.

Congratulations on good set of number and excellent leadership. The -- my question is on electricity derivatives. Ideally, the potential for this market is significant. And what sort of initiative, whether it is ministry, exchange, regulator or anything to develop this market that on that you are working, if you can highlight that will be helpful.

Yes. Thank you, Deepak. I think we are very excited about the electricity contract, right, from launch to date, it has been growing month-on-month in its participation and presence in the market. We do work with the regulators, both SEBI and CERC, but more importantly, a lot of work with the state regulators because a lot of policy really comes from the state, converting DISCOMS is a very important part of the plan. It takes more time, but I think we are at a point where some of that is going to come in as well. Looking at large traders who operate in the spot market, has been important, and those were some of the early steps that have been taken, and we are starting to see some of the members and participants in the power space starting to participate regularly there. So staying engaged with both the production side, be it solar or other producers, the consumer side, a large industrial as well as the distribution side are all actions that we are in the midst of.

The next question comes from the line of Amit Chandra from HDFC Securities.

I have like 2 follow-up questions. The first is on the competition you have answered about that in detail. But just to understand better, is it the interoperability of the clearing corporations, which is not there between equities and commodities? Is that the main reason why we are not seeing seeing the shift of the liquidity from one exchange to another? And what's your view on the regulatory line interoperability, maybe a catalytic stage? And secondly, on the impact of the RBI evolution. So the -- if we see the clearing corporation funding from FDs and the bank guarantees, the total margin like money that the clearing corporation had, MCX has the highest in terms of 55% to 60% of the total funding of the clearing corporation is through BG versus 35% for the industry. So is it a higher risk for us in terms of the impact that we see from RBI?

So to answer your question on BGs and FDs, frankly, for FDs, In terms of DGs, I think your numbers are wrong. DGs contribute a much lower percentage than FDs. So while there may be an impact, but these numbers do not impact as much as you are saying.

So I'm talking about FDs and BG combined, we don't have the expectation, but...

So as you see, the large portion -- the largest portion of that is FDs. So I don't think that would be affected to that extent. Secondly, on your intercity questions liquidity does not just go away to the internet of liquidity against liquidity, we have FDs, we have industry participating. We have on all the ingredients which help that. And also, you have to understand secondly that interoperability is only possible if there is 100% similar product. For example, in equity, the ISI of the security is the same. That is why interoperability can be possible. In commodities, commodities may be different.

Okay. So interoperability will not happen between equities and commodities, right?

We're not seeing that. We're just saying that end of the day up to the regulator, but it's tougher to have that.

We will take the last question from the line of Devesh Agarwal from IIFL Capital.

Yes. Just one question, ma'am. We see that this has been a very strong year for us in terms of profit accretion and cash accretion. But despite that, we have seen that the payouts have kind of gone down. So just wanted to know your thoughts as to this cash that we are kind of conserving what are exactly the plans for this? And what is the spend that we're expecting for the next year?

Yes. No, no. Good question, Devesh. I think it's important for us to have the sort of funding chest that is required as we look at our growth. And this is not just from more of the same standpoint. There would be both organic, inorganic opportunities that we will continue to be looking at, new product segments, ancillary spaces. So there are certain strategies that are at the very early stage, but we do have strong plans for the capital on hand.

Ladies and gentlemen, I would now like to hand the conference over to Ms. Praveena Rai, MD and CEO, MCX, for her closing comments.

Yes. Thank you. Thank you to all. It is a phenomenal set of questions. As always, we answer some, and you also leave us with a lot of food for thought to take back as we look at execution of our plans for this year and the coming quarter. I really enjoyed the discussion, all of us did. Have a good day, and look forward to connecting next time.

Thank you. On behalf of Multi Commodity Exchange of India Limited, that concludes this conference. Thank you, everyone, for joining us, and you may now disconnect your lines.