Multi Commodity Exchange of India Ltd

Dear Shareholders,

The Board of Directors present the Twenty Second Annual Report of your Company, along with the Audited Financial Statement of Accounts for the Financial Year (FY) ended 31^st March 2024.

The Company's financial performance for the Financial Year (FY) ended 31^st March 2024 is summarized below:

For FY 2023-24, your Company's (Standalone) total income stood at ' 67,124 lakh as compared to ' 52,147 lakh in FY 2022-23. The operating income during the year under review was ' 58,616 lakh as against ' 44,922 lakh in FY 2022-23. Net profit after tax in FY 2023-24 was ' 5,196 lakh as compared to ' 12,983 lakh in FY 2022-23.

The net worth of the Company as at 31^st March 2024 stood at ' 1,55,019 lakh as compared to ' 1,59,570 lakh as at 31^st March 2023.

The Company had entered into an agreement with Tata Consultancy Services Ltd. (TCS), according to which the new Commodity Derivative Platform (CDP) was to be developed, tested and delivered by TCS by 30^th September 2022.

However, since the new platform was under development, the Company considering the exigency to ensure continuity of the commodity trading and clearing platform, continued with the services of the vendor, 63 Moons Technologies Ltd., initially for a period for quarter ended December 2022 for f 6,000 lakh (plus applicable taxes). Accordingly, for the quarter ended 31^st December 2022, Company had incurred f 4,020 lakh (net of recoveries from MCXCCL, excluding applicable taxes). Later, these services were extended for another two quarters ending 30^th June 2023, for f 8,100 lakh per quarter (plus applicable taxes) as per the minimum period

of services offered by the vendor. Accordingly, for the quarter ended 31^st March 2023, and 30^th June 2023, Company has incurred f 5,427 lakh (net of recoveries from MCXCCL, excluding applicable taxes) each.

Further, due to delay in the delivery of the CDP platform, the Company had decided to extend the support services being rendered by the vendor, 63 Moons Technologies Ltd. for further two quarters, being the minimum period of services offered by the vendor, beginning from 01^st July 2023, at a consideration of f 12,500 lakh (plus applicable taxes) per quarter. Accordingly, for the quarter ended 30^th September 2023, Company has incurred f 8,375 lakh (net of recoveries from MCXCCL excluding applicable taxes) and for the quarter ended 31^st December 2023, has incurred f 11,827 lakh (net of recoveries from MCXCCL, excluding applicable taxes only till 15^th October 2023, on “pay for use basis” as per the existing resources sharing agreement).

TCS has completed development of CDP and the Company has gone live with CDP with effect from 16^th October 2023 after requisite approvals.

Your Company has, in accordance with Section 129(3) of the Companies Act, 2013, prepared the annual consolidated financial statements, consolidating its financials with its wholly-owned subsidiary Company, MCXCCL and the associate companies, CCRL and IIBH. The annual audited consolidated financial statements have been prepared in accordance with the requirements of Ind AS prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder, as applicable, and other accounting principles generally accepted in India and forms part of this Annual Report. A statement containing the salient features of financial statements of the Company's subsidiaries, associates & joint ventures in Form AOC-1 is attached as Annexure I to this Report.

During FY 2023-24, the Average Daily Turnover (ADT) of commodity futures contracts stood at ' 19,636 crore vis-a-vis ' 23,514 crore in FY 2022-23, witnessing a decline of 16.5%. However, during the same period, the options notional ADT went up by 162% to ' 89,244 crore from ' 33,998 crore. The Average Realization Rate (ARR) for the futures stood at ' 2.10 per Lakh vis-a-vis ' 2.07 per lakh (each side) during the previous year. Overall traded Unique Client Codes for futures and options (UCC - PAN based) during the period increased to 9.3 lakh from 6.2 lakh in the previous year.

The total turnover of commodity futures traded on your Exchange declined by 17% to ' 49.88 lakh crore in FY 2023-24 as against ' 60.43 lakh crore in FY 2022-23. In contrast, options turnover for the year went up by 159% to a record total turnover of ' 226.68 lakh crore as against ' 87.37 lakh crore in the previous year. The futures in bullion, energy, metals and agriculture registered a turnover of ' 31.11 lakh crore, ' 13.82 lakh crore, ' 4.80 lakh crore and ' 0.06 lakh crore, respectively, as against ' 28.20 lakh crore, ' 22.30 lakh crore, ' 9.50 lakh crore and ' 0.21 lakh crore in the previous year. On the other hand, options turnover in energy, bullion and metals recorded total of ' 203.43 lakh crore, ' 23.21 lakh crore and ' 0.05 lakh crore, respectively, during FY 2023-24 vis-a-vis ' 81.92 lakh crore, ' 5.45 lakh crore and ' 0.01 lakh crore , in the previous year.

In terms of metal delivery, a total of 94,036 metric tonnes (MT) of Base Metals were delivered through the exchange mechanism during FY 2023-24 as against 83,747 metric tonnes in FY 2022-23. During FY 2023-24, your Company's market share in commodity futures market stood at 95.9% as against 96.8% in the previous year. The volume of futures (in terms of contracts) traded on the Exchange increased by 5% in FY 2023-24, to 135.3 million lots, as compared to 128.8 million lots in FY 2022-23. On the other hand, the volume of Options (in terms of contracts) traded increased by 207% in FY 2023-24, to 381.4 million lots, as compared to 124.2 million lots in FY 2022-23.

In the calendar year 2023, the global commodity market underwent significant changes driven by economic recovery, geopolitical tensions, and environmental factors. Among Metals, gold futures reached a record high, delivering strong annual returns and silver futures also posted gains. However, Base Metals prices remained under pressure due to rising interest rates, with nickel experiencing the steepest decline, while copper prices showed a slight increase by the end of the year. In the Energy sector, both crude oil and natural gas prices concluded the year with notable declines. Among agricultural commodities, most prices, including those for cotton, soybean and wheat remained lower during 2023 compared to 2022 prices.

CME gold futures ended 2023 at $2,071.8 per ounce, a record high with a 12.46 % annual return. Silver futures averaged $24.12, a 7.5 % increase over 2022. Base metals struggled with rising interest rates; nickel saw the most significant decline. LME Copper 3M prices closed near $8,559 per metric ton, slightly up, but the average 2023 copper price was 1.7 % lower than the average 2022 price. LME Aluminium 3M and LME Zinc 3M prices dropped significantly, with nickel declining by 44.75 %. CME WTI crude oil prices ended at $71.65 per barrel, a 10.96 % decrease, with an average 2023 price down 17 % from 2022. Natural gas prices saw a substantial drop, with CME US Natural Gas Future prices ending at $2.51 per MMBtu, down 43.82 %. In agricultural commodities, ICE US Cotton Future prices saw a modest decrease, while ICE US Coffee Future prices increased notably. However, the average 2023 coffee price was lower than in 2022. ICE Cocoa Futures prices increased significantly in 2023 but remained lower on average than the previous year. CBOT US Wheat and Soybean Future prices dropped, with wheat down 20.71 % and soybeans down 15.12 % from the previous year, highlighting the varied dynamics shaping the 2023 commodity markets.

In 2023, the global commodity derivatives markets saw an increase in trading volumes across all segments, with energy leading the way, followed by agriculture, precious metals, and non-precious metals. According to the Futures Industry Association (FIA), total volumes in these segments rose by 26.6% year-on-year, reaching 8.4 billion contracts in 2023. Specifically, trade volumes in the energy segment increased by 34.2%, while volumes in agriculture, precious metals, and non-precious metals rose by 30.6%, 27.1%, and 11%, respectively.

The global economy has shown remarkable resilience in recent years, with major economies weathering challenges such as rising interest rates and external factors like the war in Ukraine. Efforts to rein in global inflation have been effective without causing a recession, leading to hopes for a stable economic scenario. According to the International Monetary Fund (IMF), global growth is projected to remain stable at around 3.2 % for both 2024 and 2025, with decreasing inflation. India's economy is expected to maintain robust growth rates of 6.8 % in 2024 and 6.5 % in 2025, driven by sustained domestic demand and a growing working- age population.

Your Company's performance during the FY 2023-24 and outlook during FY 2024-25 may be analysed against this backdrop.

There has been no change in the share capital of your Company during the year under review. As on 31^st March 2024, the paid-up share capital of your Company stood at ' 5,099.84 lakh comprising of 50998369 Equity shares of ' 10 each fully paid.

Your Company has, during the year under review, neither issued any Equity shares with differential voting rights nor issued any shares (including sweat equity shares) to its employees under any scheme.

During the year under review, the Company has complied with the specified time limit for implementation of Corporate Action.

The Company was not required to transfer any amount of profits to general reserves for FY 2023-24, pursuant to the provisions of Companies Act, 2013.

An amount of ' 1,15,875 lakh (Previous Year ' 1,20,415 lakh) is proposed to be retained as surplus in the Profit and Loss Account.

The Board of Directors of your Company in its meeting held on 23^rd April 2024, have recommended a dividend of ' 7.64 (76%) per equity share on a face value of ' 10 per share for the Financial Year ended 31^st March 2024, subject to the approval of shareholders at the ensuing Annual General Meeting.

The said dividend is in line with the Dividend Distribution Policy of the Company.

The outgo on account of the proposed dividend of 76% (Previous Year 191%) to be paid by the Company aggregates to approximately ' 3,896 lakh, being a payout of 75% of the profit after tax (PAT) for the year ended 31^st March 2024, as against ' 9,736 lakh during the previous year.

Your Directors' have recommended dividend based on the Company's performance and adequacy of existing cash/ cash equivalent at its disposal to provide for capital expenditure on technology development and new business initiatives.

In view of the changes made under the Income-Tax Act, 1961, by the Finance Act, 2020, dividends paid or distributed by the Company shall be taxable in the hands of the Shareholders. The Company shall, accordingly, make the payment of the Final Dividend after deduction of tax at source. For more clarity on deduction of tax, please refer para on ‘Tax Deducted at Source (“TDS”) on Dividend' as mentioned in the notes to the Notice of 22^nd AGM.

During the year under review, there has been no change in the Memorandum of Association ('MOA') and Articles of Association ('AOA') of the Company.

The Company continuously strives for excellence in its Investor Relations engagement with investors through physical, video and audio meetings through structured conference-calls and periodic investor/analyst interactions participation in investor conferences, quarterly earnings calls, and analyst meet from time to time. The Company's leadership team spent significant time to interact with investors to communicate the strategic direction of the business in a number of investors meets. No unpublished price sensitive information is discussed in these meetings. The Company ensures that critical information about the Company is available to all the investors, by uploading all such information on the Company's website.

The Company had received a letter dated 26^th April 2024, issued by SEBI wherein it was advised to pay the regulatory fees on the ‘Annual Turnover' considering notional value in case of option contracts from the FY 2006-07 onwards, with interest at the rate of 15% per annum. Accordingly, the Exchange has incurred expenditure amounting to ' 450 lakhs including interest (plus applicable taxes) towards the differential amount.

There are no material changes and commitments affecting the financial position of the Company which have occurred between the end of the FY 2023-24 to which the financial statement relate and the date of this Report.

During the year under review, there was no change in the nature of business of the Company.

No significant and material orders were passed, during the year under review, by the regulators or courts or tribunals impacting the going concern status and Company's operations in future.

SEBI issued a Show Cause Notice (‘SCN') dated 16^th October, 2023 to MCX, four of its Key Management Personnel (‘KMPs'), it's subsidiary i.e. Multi Commodity Exchange Clearing Corporation Limited (‘MCXCCL') and one of the subsidiary's KMP. The SCN, inter alia, alleges that the management of both MCX and MCXCCL failed to implement the SEBI circular dated 13^th September, 2017 on outsourcing of activities. MCX, MCXCCL and the concerned KMP's have filed their responses to the matter. The matter was heard by SEBI and the Regulator opined that in the event the settlement application filed by the Noticees is rejected, another hearing may be scheduled. MCX and MCXCCL have also submitted a settlement applications for an Indicative Amount (IA) for settlement of Rupees Twenty-Five Lakhs (Rs.19 Lakhs for MCX and ' 6 Lakhs for MCXCCL). The Exchange has made a provision for the same. The Internal Committee (IC) of SEBI advised to re-compute the IA. Accordingly, a revised IA of Rs. One Crore Thirty Seven Lakh Eight Thousand was proposed to IC. Subsequently, the IC suggested an IA, which was much higher than the IA submitted by the Exchange. Accordingly, the Exchange may consider to submit Revised Settlement Term.

During the audit period, SEBI issued various advisory, deficiency, and warning letters to the Company, advising corrective actions regarding operations, technology, and compliance matters. No fines or penalties were imposed on the Company in connection with these letters. Therefore, these instances are not covered in this report.

During the audit period, the Company has paid a compounding fee of ' 4,50,000/- to RBI as per the order dated 25^th January 2024 in the matter of contravention under Regulation 16(i)(vi) read with Regulation 16 (3) of FEMA 120, where the Company divested from its overseas Joint Venture through the automatic route and did not seek prior approval from the RBI for the sale of 500 shares in the Dubai Gold Exchange in the year 2018.

Pursuant to the provisions of Section 124 of the Companies Act, 2013 (“the Act”) read with Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 (“IEPF Rules”), and relevant circulars and amendments thereto, the amount of dividend remaining unpaid or unclaimed for a period of seven years from the date of transfer of such amount to Unpaid Dividend Account, is required to be transferred to the Investor Education and Protection Fund (“IEPF”), constituted by the Central Government.

The Company had, accordingly transferred the following amount to IEPF during the year under review:

Pursuant to the provisions of IEPF Rules, all equity shares in respect of which dividend has not been paid or claimed for last seven consecutive years shall be transferred by the Company to the designated Demat Account of the IEPF Authority (“IEPF Account”) within a period of thirty days of such shares becoming due to be transferred.

Accordingly, 1496 equity shares of ' 10/- each on which the dividend remained unpaid or unclaimed for last seven consecutive years with reference to the due date of 24^th November 2023, were transferred during the FY 2023-24 to the IEPF Authority after following the prescribed procedure.

All equity shares in respect of which dividend has not been paid or claimed for last seven consecutive years shall be transferred by the Company to IEPF Authority in accordance with provisions of the Act and IEPF Rules made thereunder. Members who have not encashed any of their dividends, which have not been transferred to IEPF Authority, are advised to claim their dividends.

Any Shareholder whose dividend/shares are transferred to IEPF can claim the shares by making an online application in Form IEPF-5 (available on www.iepf.gov.in ).

Name: Manisha Thakur, Company Secretary and Compliance Officer Email address: Manisha.Thakur@mcxindia.com

Your Company has not invited any deposits from the public, and as such, no amount of principal or interest related thereto was outstanding as on 31^st March 2024.

The details of loans, guarantees and investments under the provisions of Section 186 of the Companies Act, 2013 read with the Companies (Meetings of Board and its Powers) Rules, 2014, as on 31^st March 2024, are set out in Note 4 & 8 to the Standalone Financial Statements of the Company.

The Company has not provided any guarantee or security to any person or entity and has not made any loans and advances in the nature of loans to firms/companies in which Directors of the Company are interested.

During FY 2023-24, 18 (Eighteen) meetings of the Board of Directors were held. The details of meetings of the Board are provided in the Corporate Governance Report forming part of this Annual Report.

Separate meetings of the Public Interest Directors were held on 27^th July 2023 and 15^th December 2023.

Your Company, being a recognized stock exchange and regulated by SEBI, is required to, inter alia, comply with the provisions relating to constitution of the Company's Board of Directors as specified in the Companies

Act, 2013, the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018 (hereinafter referred to as the “SECC Regulations, 2018”) and the SEBI (LODR) Regulations, 2015.

Your Company has a well-diversified Board comprising of Directors coming from various walks of life and having wide range of experience, in the areas of management, technology, governance, risk management, capital market, leadership and finance. A multi-faceted talent-pool enables leveraging multitude of thoughts, perspectives, knowledge base, skills and industry experiences, to ensure effective corporate governance and sustained commercial success of the Company.

As on 31^st March 2024, the Board comprised of 9 (nine) Directors, of which 5 (five) were Public Interest Directors (PID)/Independent Directors, 3 (three) were Non-Independent Directors and 1 (one) Managing Director. Your Company had 1 (one) Woman Independent Director on the Board, in compliance with the SEBI (LODR) Regulations, 2015.

A “Public Interest Director” under the SECC Regulations, 2018, means an Independent Director representing the interests of investors in securities market and who is not having any association, directly or indirectly, which in the opinion of the Board, is in conflict with his/her role. Accordingly such Directors are considered as Independent Directors for adhering compliance with the provisions of the SEBI (LODR) Regulations, 2015 and the Companies Act, 2013.

As mandated, all the Public Interest Directors of your Company have been duly registered with the databank for Independent Directors maintained by the Indian Institute of Corporate Affairs.

Your Company has received confirmations from all the Public Interest Directors to the effect that each of them meets the criteria of independence, as prescribed under Regulation 16(1 )(b) of the SEBI (LODR) Regulations, 2015 and Section 149(6) of the Companies Act, 2013. There has been no change in the circumstances affecting their status as Independent Directors of the Company. The appointment of Independent Directors/Public Interest Directors on the Board of your Company is in accordance with the eligibility conditions prescribed by SEBI and is made with the approval of SEBI.

Further, all the Directors have confirmed that they are ‘Fit and Proper,' in terms of the SECC Regulations, 2018. Your Company has also obtained affirmation of adherence to Schedule IV of the Companies Act, 2013 and the Code of Conduct in accordance with the SECC Regulations, 2018, SEBI (LODR) Regulations, 2015 from all the Directors, as applicable to them.

None of the Directors of the Company are disqualified for being appointed as Directors as specified in Section 164 (2) of the Act read with Rule 14 of Companies (Appointment and Qualifications of Directors) Rules, 2014.

During the year under review, Mr. Ved Prakash Chaturvedi (DIN: 00030839) vide his letter dated 11^th August 2023 has tendered his resignation as Non-Executive- Independent Director/Public Interest Director of the Company with effect from 11^th August 2023 for personal reasons. Mr. Chaturvedi in his letter has also confirmed that there are no other material reasons for his resignation other than those mentioned in the resignation letter.

Pursuant to Section 152 of the Companies Act, 2013 read with relevant rules framed thereunder, Mr. Hemang Raja (DIN: 00040769), Non-Independent Director (NID) of the Company, was liable to retire by rotation at the 21^st Annual General Meeting (“AGM”) held on 26^th September 2023. Accordingly, shareholders at their 21^st Annual General Meeting approved the re-appointment of Mr. Hemang Raja as NID of the Company. His re-appointment was subject to regulatory approval. In the meantime, Mr. Hemang Raja has withdrawn his re-appointment as NID due to personal reasons. Accordingly, Mr. Raja retired as NID of the Company on 26^th September 2023.

During the year under review, Mr. Shankar Aggarwal (DIN: 02116442) completed his second term as Public Interest Director of the Company on 30^th September 2023.

On account of the superannuation of Mr. Vivek Krishna Sinha (DIN: 08667163) from the services of NABARD, he has tendered his resignation from the position of NID of the Company with effect from 31^st October 2023.

Further, NABARD had nominated Ms. Suparna Tandon (DIN: 08429718), CGM, NABARD to be appointed as NID on the Board of MCX. Shareholders of the Company at its 21^st AGM held on 26^th September 2023 had approved the appointment of Ms. Suparna Tandon as a NID on the Board of the Company, subject to approval of SEBI. Thereafter, with approval of SEBI vide letter dated 15^th December 2023, Ms. Tandon was appointed as NID with effect from 15^th December 2023. Ms. Tandon, vide her email dated 21^st July 2024 has tendered her resignation as Non-Executive, NID of the Company pursuant to her voluntary retirement with effect from 19^th July 2024, from the services of NABARD. Accordingly, Ms. Tandon ceased to be NID of the Company with effect from 19^th July 2024.

The first term of Mr. C S Verma (DIN: 00121756) was due for completion on 21^st May 2024. Accordingly, upon the recommendation of the Nomination and Remuneration Committee (NRC) and the Board of Directors, SEBI vide letter dated 12^th March 2024 has approved the re-appointment of Mr. C S Verma and appointment of Dr. Navrang Saini (DIN: 09650867) as Public Interest Directors of the Company. The Board of Directors had approved the re-appointment of Mr. C S Verma as PID for further period of 3 years with effect from 22^nd May 2024 and appointment of Dr. Navrang Saini as PID for 3 years with effect from 14^th March 2024.

The tenure of Mr. P.S. Reddy (DIN: 01064530) as Managing Director and Chief Executive Officer (MD & CEO) of MCX was completed on 09^th May 2024. Accordingly, he retired from the position of MD & CEO of the Company with effect from closure of business hours on 09^th May 2024.

In this regard, the Board of Directors had approved an interim arrangement by constituting an Executive Committee (“EC”) comprising of senior officials namely, Chief Operating Officer, Chief Business Officer, Chief Technology Officer and Chief Regulatory Officer. The EC was made effective from 10^th May 2024 and has been delegated with necessary powers to discharge the day-to-day operations of the Exchange till appointment of the new MD & CEO. The COO has been nominated as the Coordinating Officer.

Dr. Harsh Kumar Bhanwala (DIN: 06417704) will be completing his first term as Public Interest Director (PID) on 07^th August 2024. In this regard, upon the recommendation of the NRC and the Board of Directors, SEBI has vide its letter dated 24^th June 2024, approved the re-appointment of Dr. Harsh Kumar Bhanwala as PID on the Governing Board of the Company. Accordingly, the Board of Directors had approved Dr. Bhanwala's re-appointment for a period of further 3 years with effect from 08^th August 2024.

The Board of Directors places on record their earnest appreciation to the invaluable contribution, leadership and guidance extended by Mr. Shankar Aggarwal, Mr. Hemang Raja, Mr. Vivek Sinha, Mr. Ved Prakash Chaturvedi, Ms. Suparna Tandon and Mr. P. S Reddy to the Board and the Management of the Company during their association.

In accordance with the provisions of the Companies Act, 2013, Mr. Mohan Shenoi (DIN:01603606), NID, who has been longest in office since his appointment, is liable to retire by rotation at the ensuing AGM and being eligible, is seeking re-appointment. The Board recommends his re-appointment.

The first term of Mr. P.S. Reddy as MD and CEO completed on 09^th May, 2024. The Company initiated the process for selection of candidates for the position of MD & CEO of the Exchange in November 2023 and published an advertisement in the newspapers. Mr. Anup Wadhawan was inducted in the NRC for limited purpose of MD & CEO selection as per the SEBI approval dated 08^th December 2023. The Exchange recommended two names and the compensation payable, to the SEBI vide application dated 14^th February 2024, for its consideration. SEBI vide letter dated 22^nd March 2024, directed to the redo the process of MD & CEO selection.

In this regard, as advised by SEBI, the process for selection was reinitiated and Korn Ferry (Executive Search Firm) was appointed to handle the MD & CEO search mandate. To redo the selection, the newspaper advertisement inviting applications for the post of MD & CEO was once again published on 30^th April 2024. The Exchange after following due process and as per the recommendation of the NRC and Board vide respective meetings dated 05^th July 2024, recommended to the SEBI two names and the compensation payable, vide application dated 10^th July 2024, for its consideration.

SEBI vide its letter dated 08^th August 2024, approved the name of Ms. Praveena Rai as MD & CEO of the Company for a period of five years, which shall be effective from the date of her joining. Further, the Exchange shall ensure that the compensation paid to Ms. Praveena Rai (DIN: 09474203) is in accordance with Regulation 27 of SECC Regulations, 2018.

The NRC and the Board at its meeting held on 10^th August 2024, approved the appointment, terms and conditions including remuneration of Ms. Praveena Rai as MD & CEO of the Company, subject to the approval by the Shareholders. Accordingly, approval of the shareholders has been requested through a special resolution in the Notice for the Annual General Meeting.

The Independent External Experts are appointed for a period of three years, with further extension of three years subject to performance evaluation in accordance with SECC Regulations, 2018. Further, internal performance evaluation of Independent External Experts are carried out annually.

The following employees became KMPs under the SECC Regulations, 2018 during FY 2023-24:

Further, the following employees ceased to be KMPs under the SECC Regulations, 2018 during FY 2023-24:

Mr. Chandresh Shah joined MCX as CFO- Designate on 18^th April 2024 and was designated as Chief Financial officer w.ef. 01^st May 2024. Mr. Sunil Batra joined MCX as CTO - Designate on 26^th April 2024 and was designated as Chief Technology Officer w.e.f 01^st May 2024. Mr. Shailendra Aggarwal joined as DR Site in Charge on 23^rd May 2024.

Mr. Satyajeet Bolar ceased to be the Chief Financial Officer with closing hours of 30^th April 2024.

Mr. P. S. Reddy ceased to be the MD & CEO with closing hours of 09^th May 2024

Your Company has formulated a Policy for Performance Evaluation/Review in accordance with the provisions of the Companies Act, 2013, SEBI (LODR) Regulations, 2015, SECC Regulations 2018, SEBI Circular dated 05^th January 2017 providing guidance to listed entities about various aspects involved in the Board Evaluation process (“SEBI Guidance Note”) and SEBI circular dated 05^th February 2019 on performance review of Public Interest Directors.

The Policy has been framed with an objective to ensure that Individual Directors of the Company and the Board as a whole, work efficiently and effectively, for the benefit of the Company and its stakeholders.

Your Company has implemented a system of evaluating performance of the Board of Directors, its Committees and Individual Directors, through peer evaluation, excluding the Director being evaluated, on the basis of a structured questionnaire.

The criteria for performance evaluation, inter-alia, includes the following:

Level of participation and contribution to the performance of Board/Committee(s) meetings, qualification & experience, knowledge and competency, fulfilment and ability to function as a team, initiatives taken, adherence to the rules/regulations, having independent views and judgement, providing guidance to senior management and Board members, etc.

Pursuant to SECC Regulations, 2018 read with SEBI circular dated 05^th February 2019, the tenure of PIDs may be extended by another 3 years, subject to performance evaluation, internal and external, both carrying equal weightage Such PIDs shall be subject to:

a. Internal evaluation by all the governing Board Members, based on the criteria for the performance review of Individual Director; and

b. External evaluation by a management or a human resources consulting firm based on their predetermined criteria.

Providing entrepreneurial leadership to the Company, having clear understanding of the Company's core business and strategic direction, maintaining contact with management and external stakeholders, ensuring integrity of financial controls and systems of risk management, making high quality decisions, monitoring performance of management, maintaining high standards of integrity and probity, encouraging transparency, etc.

Providing effective leadership, setting effective strategic agenda of the Board, encouraging active engagement by the Board members, providing guidance and motivation to MD & CEO, impartiality in conducting discussions, establishing effective communication with all stakeholders, etc.

Sufficiency in the scope for addressing the objectives, effectiveness in performing the key responsibilities, adequacy in composition and frequency of meetings, quality of relationship of the Committee with the Board and the management, clarity of agenda discussed, discussion on critical issues, clarity of role and responsibilities, etc. Additionally, external performance evaluation of Committees has been carried out for FY 2023-24.

The detailed procedure followed for the performance evaluation of the Board, Committees and individual Directors & Independent External Persons is enumerated in the Corporate Governance Report forming part of this Annual Report.

The Company is an affiliate member of the International Organisation of Securities Commissions (IOSCO), which is an international body that brings together the world's securities regulators and is recognised as the global standard setter for the securities sector. The Exchange is ranked world's 3^rd largest Exchange by the number of commodity Options contracts traded in CY 2023, improving from 5^th position last year. (Source: FIA Annual Volume trading statistics).

With an aim to seamlessly integrate with the global commodities ecosystem, MCX has forged strategic alliances with leading international exchanges such as CME Group and London Metal Exchange (LME). The Exchange also signed Memorandum of Understanding (MoUs) with renowned global exchanges viz. Dalian Commodity Exchange (DCE), Taiwan Futures Exchange (TAIFEX), Zhengzhou Commodity Exchange (ZCE) and European Energy Exchange AG (EEX) to facilitate cooperation in areas of sharing knowledge and expertise, education & training, etc. In April ‘22, MCX signed a consultancy agreement with Chittagong Stock Exchange Limited (CSE) for setting up the first commodity derivatives platform of Bangladesh. Under this agreement, MCX shall assist and provide consultancy services in the areas of products, clearing and settlement, trading, warehousing, regulatory aspects, etc. In February'24, MCX and Jakarta Futures Exchange (JFX) signed an MoU to enhance collaboration in key areas, including knowledge sharing, research, education, training, awareness creation, and other market development initiatives. The Exchange has also tied-up with various trade bodies, industry associations and educational institutions across the country. These partnerships enable the Exchange to improve trade practices, increase awareness, and facilitate overall growth and development of the commodity market.

In pursuit of the Atmanirbhar Bharat Mission, the Multi Commodity Exchange of India Ltd. (MCX) has embarked upon the path of recognizing domestic bullion refiners for good delivery of gold on Exchange platform.

Accordingly, MCX empanelled five domestic refiners as per “MCX Good Delivery Norms for BIS-Standard Gold/Silver” effective from 06^th March 2021 and saw a successful delivery of 9,223 kg (about ' 5,170 crore) till 05^th May 2024 contract.

MCX Gold Options with Gold (1 kg) Futures as underlying contract registered an average daily turnover of ' 5,447 crores in FY 2023-24 up by 247% from ' 1,572 crores in FY 2022-23. It's highest turnover of ' 37,878 crore was observed on 21^st March 2024 and recorded highest open interest of 23,678 Kg on 13^th March 2024.

MCX Gold Mini Options with Gold Mini (100 gram) Futures as underlying registered an average daily turnover of ' 660 crores in FY 2023-24 up by 400% from ' 132 crores in FY 2022-23. It's highest turnover of ' 3,332 crore was observed on 27^th December 2023 and recorded highest open interest of 1623 Kg on 26^th December 2023.

Similarly, MCX Silver Options with Silver (30 kg) Futures as underlying contract registered an average daily turnover of ' 2,586 crores in FY 2023-24 up by 1161% from ' 205 crores in FY 2022-23. It's highest turnover of ' 18,803 crore was observed on 22^nd February 2024 and recorded highest open interest of 5,74,200 Kg on 22^nd February 2024.

Further, MCX Silver Mini Options with Silver (5 kg) Futures as underlying contract registered an average daily turnover of ' 408 crores in FY 2023-24 up by 558% from ' 62 crores in FY 2022-23. It's highest turnover of ' 2,675 crore was observed on 21^st August 2023 and recorded highest open interest of 1,21,885 Kg on 13^th February 2024.

Gold Petal (The world's first deliverable 1 gram Gold Futures contract) has seen delivery of 600 kg (5,99,997 coins) since its launch in October 2019 till 31^st March 2024.

Similarly, Silver (1kg) Micro contract has seen successful delivery of 1,35,811 kg from February 2020 series onwards till 31^st March 2024 and Silver Mini (5 Kg) has seen successful delivery of 1,85,340 kg from June 2020 series onwards till 31^st March 2024.

A product profile for Bullion has been hosted on the website of the Company to help investors understand the physical market dynamics which influence the trading on the Exchange.

The global oil market experienced notable changes, in the form of fluctuating crude oil prices and a consistent rise in both consumption and production. Global oil market was largely supported by both consumer mobility, and producer economics. However, the conflict among groups heightened geopolitical tensions and raised concerns that an escalation of the conflict could further disrupt the flow of crude oil via key trade chokepoints. The main alternative shipping route around Africa's Cape of Good Hope extended voyages by up to two weeks, adding pressure on global supply chains and boosting freight and insurance costs.

Russia became the top oil supplier to India during the fiscal year 2023-24 for a second year in a row, squeezing the market share of Middle Eastern and OPEC producers to historic lows. From a domestic perspective, India plans to build its first privately managed strategic petroleum reserve (SPR) by 2029-30, granting the operator the freedom to trade all the stored oil, according to the chief executive of Indian Strategic Petroleum Reserves Ltd (ISPRL). Expanding oil storage capacity would also help India join the International Energy Agency (IEA), which requires its members to hold a minimum of 90 days of oil consumption.

In the natural gas segment, Indian LNG imports were up 16% year-on-year in the fiscal year 2023-24, while total gas consumption in the country was higher by 10%, aided by softer international prices, during the same period. Imports accounted for 46% of total domestic gas consumption in the fiscal year 2023-24. Sectors including power, fertilizers and other industries ramped up their intake of fuel as prices hit a three-year low due to ample supply in the market. LNG prices in the international markets dropped as mild winter and high levels of storage in Europe weakened demand.

In the domestic market, Government of India has revised domestic natural gas pricing guidelines for gas produced from nomination fields of ONGC/OIL, New Exploration Licensing Policy (NELP) blocks and pre-NELP blocks, where price of such natural gas to be 10% of the monthly average of Indian Crude Basket and shall be notified on monthly basis. For the gas produced by ONGC/OIL from their nomination fields, the above- mentioned APM price shall be subject to a ceiling of US$ 6.50/MMBTU on Gross Calorific Value (GCV) basis for the same period.

Phenomenal success has been witnessed in the crude oil and natural gas options contracts. MCX Crude oil options registered an ADT of ' 69,040 cr during FY 2023-24, compared to an ADT of ' 25,888 cr during FY 2022-23, marking a remarkable increase of 166%. MCX Crude oil options contracts set a benchmark by registering the highest turnover of ' 2,96,916 cr on 15^th May 2024. The MCX Natural gas options also saw incredible growth of 84%, as it clocked an ADT of ' 11,049 cr during FY 2023-24, as compared to ' 5,986 cr in FY 2022-23. MCX Natural Gas Options contract made a hat trick of new highs, finally setting the highest at ' 84,774 Crores on 23^rd May 2024. The MCX Crude oil futures contracts registered an average daily turnover (ADT) of ' 1,940 cr in FY 2023-24. The MCX Natural gas futures contracts registered an ADT of ' 3,090 cr in FY 2023-24. Meanwhile, MCX Crude oil mini futures registered an ADT of ' 209 cr in FY 2023-24 and MCX Natural gas mini futures contracts registered an average daily turnover of ' 204 cr in FY 2023-24.

With our vision of catering to wider value chain participants in the energy complex, especially from the perspective of SME/MSME companies and the retail participants, the Exchange launched crude oil mini options (10 bbl) and natural gas mini options (250 MMBtu). Both the contracts were launched on 23^rd April 2024. The contracts garnered good market interest and clocked an Average Daily Turnover (ADT) of ' 145 cr and ' 91 cr respectively, since inception to 30^th June 2024.

‘MCX Energy Conclave 2024' was hosted at the Taj Lands End, Mumbai on 26^th April 2024, a one-day thought leadership conference to deliberate and brainstorm over thematic sessions, unfolding the energy landscape. The distinguished Chief Guest Shri. Ananth Narayan G, Whole Time Member, SEBI addressed the gathering along with our Guest of Honour, Smt. Yogieta S. Mehra, Chief (Economics), CERC. The conclave was well attended by regulatory bodies, oil & gas industry, financial institutions, broker members and other stakeholders of India's commodity market, reaffirming MCX's commitment to fostering dialogue and knowledge-sharing within the industry.

MCX agriculture commodities futures registered an average daily turnover of 22.30 crore in FY 2023-24 compared to 91.43 crore in FY 2022-23. The MCX Cotton contract turnover in FY 2023-24 with an average daily turnover of 12.39 crore compared to 78.82 crore compared in FY 2022-23. Average daily turnover of Mentha oil contract is 9.91 crore in FY 2023-24 compared to FY 2022-23 was 12.61 crore.

The CPO futures was suspended from 20^th December 2021, the suspension period was extended further one year till 20^th December 2024. The CPO futures contract met the eligibility criteria for options contract and the Exchange also obtained approval from the regulator for launch of options contract. However, due to the suspension of CPO futures, the launch of CPO options also remains suspended.

In pursuit of the Atmanirbhar Bharat mission, the Company has embarked upon the path of branding domestic Refined Lead Producers to facilitate their direct participation in price discovery and good delivery on Exchange platform. One additional domestic Refined Lead producers, namely, (1) Ardee Industries Pvt. Ltd, Nellore, (2) POCL Enterprises Limited, Maraimalai Nagar, (3) Gravita India Limited, Phagi plant, and (4) Gravita India Limited, Mundra plant were empaneled as MCX approved brands during the FY 2023-24. This takes the total count of

approved domestic refined lead producers to seven. The empanelment of some more domestic producers is under process.

In all, 94,036 MTs of base metals were delivered via the Exchange settlement in FY 2023-24. The Exchange worked out to be the perfect platform for delivery-of-last-resort.

The Exchange has a constant endeavour to make ‘One-India-One-Price' for all metals traded on the Exchange. To meet this objective, we have expanded our delivery centers across the country to cater to the collective needs of the wider audience. Delivery centers are now operational at Raipur (Chhattisgarh), Kolkata (West Bengal), Palwal (NCR/Haryana), Chennai (Tamil Nadu) and Thane (Maharashtra). The additional delivery centers have also started witnessing inflows of multiple metals.

In addition to this, the Exchange had launched Mini Contracts (1MT each for Aluminium, Lead and Zinc) towards the end of FY 2022-23 to bring back the lost retail participation. The delivered quantity of Aluminium Mini, Lead Mini and Zinc Mini is 5,108 MTs, 304 MTs, and 5,972 MTs respectively via Exchange settlement during FY 2023-24. Further, in FY 2023-24 the Exchange also launched Steel Rebar contract of 5MT lot size with five delivery centers of Raipur, Durgapur, Chennai, Palwal and Thane keeping in mind the national presence.

Some of the important highlights of Base Metals in the year 2023-24 are:

1. The cumulative deliveries via exchange settlement went past 4 Lakh MTs since the year 2019 when those were converted to delivery settled contracts.

2. Open Interest has gone up further across the metal contracts. Average daily OI for FY 2023-24 was at 74,337 MTs v/s 54,749 MTs for FY 2022-23. Copper and Zinc Open Interest was a standout performance in FY 2023-24.

3. We have made the BIS registered grade as base grade for the Refined Lead and Lead Mini contracts. The minimum Lead purity levels are now at 99.98% with MCX empaneled brands being eligible to be deliverable. The LME registered brand of Lead with minimum purity of 99.98% and above continues to be deliverable.

The Average Daily Turnover (ADT) for FY 2023-24 for MCX iCOMDEX Index futures was ' 32 crore. The Exchange is reaching out to the market participants for increased participation in the index products. SEBI has issued the regulatory framework for Options on commodity indices and the Exchange shall consider launching the same post necessary technology developments.

As on 31^st March 2024, the Company has a national reach with 547 members, having 36,312 Authorised Persons, operating through several terminals connected through various available modes of connectivity (including Computer to Computer Link (CTCL), Internet Based Trading and Wireless Trading) around 685 cities/ towns across India. The unique traded client codes (UCC - PAN based*) which are of significant importance to Exchange, witnessed a rise from 6.2 lakh in FY 2022-23 to 9.3 lakh in FY 2023-24.

On the Institutional front, more Mutual Funds with new schemes were registered in the exchange for participation in FY 2023-24. In the Alternative Investment Funds & PMS category we saw addition of names. In FY 2023-24, FPIs turnover and participation was highest and to further enhance their participation Direct Market Access (DMA) facility was rolled out by the regulator.

During the year under review, SEBI, has issued master circulars for Stock Brokers, Commodity Derivatives Segment, Know Your Client (KYC) norms for Securities market and Online Resolution of Disputes, has amended certain clauses of PML guidelines, Upstreaming of clients' funds by Stock Brokers, Online Resolution of Disputes, Cyber Security and Cyber Resilience framework for Stock Exchanges, has extended the timelines in cases of Trading preferences by clients, nomination in eligible demat accounts and prescribed framework of Qualified Stock Brokers to more stock brokers, facility of voluntary freezing/blocking the online access of the trading account on account of suspicious activities, guidelines for strengthening Cyber Security and Cyber Resilience framework of Mils and Most Important Terms and Conditions.

SEBI has allowed Stock Exchanges to launch additional thirteen goods and alloys for five metals in future in their commodity derivatives segment by amending section 2 of the SCRA, 1956.

I. In order to enable the Members to have access to all the applicable circulars at one place, SEBI has directed MIIs to issue Master Circular incorporating all guidelines issued during the financial year on or before 30^th April of each year. The first Master Circular incorporating all the guidelines applicable as on 31^st March 2024 shall be issued on or before 30^th June 2023.

II. SEBI has issued circular addressing stockbrokers, clearing members through stock exchange to wound down the existing bank guarantee created out of client's fund by 30^th September 2023. Further, no new bank guarantee shall be created out of clients' funds by stockbrokers, clearing members from 01^st May 2023.

Stock Brokers to provide certificate from its statutory auditor confirming the implementation of this circular by 16^th October 2023 and Stock Exchanges and Clearing corporation shall verify the compliance of the provisions of this circular in their periodic inspections/reporting.

III. The Government of India, Ministry of Finance has issued an order dated 30^th January 2023 vide F. No. P-12011/14/2022-ES Cell-DOR (“the Order”) detailing the procedure for implementation of Section 12A of the Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005 (“WMD Act”), in consonance with order issued by Ministry of Finance (MOF), SEBI has issued circular directing Stock Exchanges and Intermediaries to comply with the procedure laid down in the said Order.

I. Based on the recommendations of the Technology Advisory Committee (TAC), SEBI has directed the MIIs to ensure the requirements prescribed in the circular while establishing the testing framework of its systems/applications.

II. SEBI has allowed stock exchanges to extend Direct Market Access facility to Foreign Portfolio Investors for participation in Exchange Traded Commodity Derivatives subject to the conditions specified in the circulars.

III. In order to ensure availability of comprehensive information mentioned in various circulars/directions pertaining to stock brokers at one place, SEBI has issued Master Circular for stock brokers for necessary compliances.

IV. Based on extensive deliberations with the Clearing Corporations and recommendations of Risk Management Review Committee, Clearing Corporation in Commodity Derivatives Segment may now

align their core SGF in terms of SEBI circulars dated 27^th August 2014 as well as 11^th July 2018 and excess contribution, if any, may be returned to the contributing stakeholders on a pro-rata basis, after taking due approval from SEBI.

I. SEBI has specified the framework for upstreaming of clients' funds by Stock Brokers (SBs)/ Clearing Members (CMs) to Clearing Corporations (CCs). As per the framework, no clients' funds shall be retained by SBs/ CMs on End of Day (EoD) basis. The clients' funds shall all be upstreamed by SB/ CMs to CCs only in the form of either cash, lien on FDR (subject to certain conditions), or pledge of units of Mutual Fund Overnight Schemes (MFOS).

II. SEBI has issued circular on amendment to Guidelines on Anti-Money Laundering (AML) Standards and Combating the Financing of Terrorism (CFT) /Obligations of Securities Market Intermediaries under the Prevention of Money-laundering Act, 2002 and Rules framed there under.

III. SEBI has modified clause no. 3.C.V and 3.A.I.d of its earlier circular dated 08^th June 2023 on Implementation of circular on upstreaming of clients' funds by Stock Brokers (SBs) / Clearing Members (CMs) to Clearing Corporations (CCs). Further, extended the applicability of the provisions of the earlier circular stated at clause 3.C.II, 3.C.III, 3.C.V, 3.C.IX, 3.C.XI from 01^st September 2023.

I. SEBI advised MIIs in consultation with their empanelled ODR Institutions to establish a common Online Dispute Resolution Portal (“ODR Portal”) which harnesses online conciliation and online arbitration for resolution of disputes arising in the Indian Securities Market.

I. SEBI vide its circular dated 01^st August 2023 on ‘Trading Preferences by Clients' has clarified that the format of “Trading Preferences” as specified in SEBI circular dated 21^st June 2023, shall not be made applicable to members registered exclusively with commodity derivatives exchanges. Such members shall use the format as prescribed by the erstwhile Forward Markets Commission (FMC) vide its circular no. FMC/COMPL/IV/KRA-05/11/14 dated 26^th February 2015.

II. SEBI has issued Corrigendum cum amendment to circular dated 31^st July 2023 on Online Resolution of Disputes in the Indian Securities Market wherein certain clauses of circular dated 31^st July 2023 were modified.

III. In order to ensure availability of comprehensive information mentioned in various circulars pertaining to commodity derivatives market or segment at one place, SEBI has issued Master Circular for Commodity Derivatives Segment.

IV. SEBI has issued a circular dated 11^th August 2023, to simplify the KYC process and rationalize the risk management framework based on the feedback received from Stakeholders.

V. SEBI has modified clause 3 of its earlier circular dated 20^th May 2022 on Modification in Cyber Security and Cyber Resilience framework for Stock Exchanges, Clearing Corporations and Depositories.

Further, MIIs whose systems have been identified as Critical Information Infrastructure (CII) by National Critical Information Infrastructure Protection Centre (NCIIPC), are mandated to send regular updates/ closure status of the vulnerabilities found in their respective “protected systems” to NCIIPC.

VI. SEBI has issued guidelines for strengthening the existing cyber security and cyber resilience framework of MIIS as mentioned in the Annexure A of the said circular.

The compliance of the guidelines shall be provided by the MIIs along with their cybersecurity audit report (conducted as per the applicable SEBI Cybersecurity and Cyber Resilience framework). The compliance shall be submitted as per the existing reporting mechanism.

I. SEBI has revised the framework for handling of complaints received through SCORES platform for Entities and for monitoring the complaints by designated bodies is specified in Annexure I of the SEBI circular.

II. SEBI has made submission of choice of nomination of trading account as voluntary and extended timelines for nomination in eligible demat accounts and submission of PAN, Nomination, Contact details, Bank A/c details and specimen signature for its corresponding folio numbers till 31^st December 2023.

I. SEBI has introduced a centralized mechanism for reporting and verification in case of the demise of an investor.

Also, in order to have uniformity of operationalizing this circular, a common Standard Operation Procedure has been issued on Exchange website in consultation with Stock Exchanges, Depositories, KRAs and Industry Associations.

II. In order to ensure availability of comprehensive information mentioned in various circulars/directions pertaining to Know Your Client (KYC) norms to be followed by intermediaries in the securities market at one place, SEBI has issued Master Circular on Know Your Client (KYC) norms for the securities market.

III. SEBI has issued circular on amendment to Guidelines on Anti-Money Laundering (AML) Standards and Combating the Financing of Terrorism (CFT) /Obligations of Securities Market Intermediaries under the Prevention of Money-laundering Act, 2002 and Rules framed there under pursuant to Government of India gazette notification dated 04^th September 2023.

I. In order to bring into focus the critical aspects of the broker-client relationship and for ease of understanding

of the clients, SEBI has advised that brokers shall inform a standard Most Important Terms and Conditions (MITC) which shall be acknowledged by the client.

I. SEBI had extended timelines for implementation of provisions of circular no. SEBI/HO/OIAE/IGRD/ CIR/P/2023/156 dated 20^th September 2023 related to work flow of processing of investor grievances by Entities and framework for monitoring and handling of investor complaints by the Designated Bodies to 01^st April 2024.

II. SEBI has revised the framework for Upstreaming of clients' funds by Stock Brokers (SB)/Clearing Members (CM) to Clearing Corporations (CCs).

SBs/CMs shall upstream all the clients' clear credit balances to CCs on End of Day (EOD) basis. Such upstreaming shall be done only in the form of either cash, lien on Fixed Deposit Receipts (FDRs) created out of clients' funds, or pledge of units of Mutual Fund Overnight Schemes (MFOS) created out of clients' funds.

III. SEBI has amended certain clauses of its earlier circulars dated 31^st July 2023 on Online Resolution of Disputes in the Indian Securities Market.

IV. SEBI has extended timelines for providing ‘choice of nomination' in eligible demat accounts and mutual fund folios to 30^th June 2024.

V. SEBI has modified clause 47 of Master Circular on Stock Brokers dated 17^th May 2023 and the same is applicable with effect from quarterly settlement of January - March 2024 and monthly settlement of January 2024.

VI. SEBI has issued a master circular for Online Resolution of Disputes.

I. The framework for Trading Members to provide the facility of voluntary freezing/blocking the online access of the trading account to their clients on account of suspicious activities shall be laid down by the Industry Standards Forum, under the aegis of stock exchanges, in consultation with SEBI and the same shall inter-alia contain necessary guidelines as mentioned by SEBI in the circular.

Stock Exchange to ensure that the guidelines so issued under the framework (framework for Trading Members to provide the facility of voluntary freezing/blocking the online access of the trading account to their clients on account of suspicious activities) are implemented by Trading members with effect from 01^st July 2024.

Stock Exchanges shall also put in place an appropriate reporting requirement by Trading Members to enforce the above system. A compliance report to this effect shall be submitted to SEBI latest by 31^st August 2024.

II. In order to bring in efficiencies in reporting and a step towards ease of doing business, SEBI has discontinued certain reports and modified the following clauses of the Master circular on Stock Brokers dated 17^th May 2023.

Stock Exchanges shall put in place a mechanism for monitoring of clients' funds (‘G' principal) lying with the stock brokers on the principle enumerated below:

G Principle: The total available funds i.e. cash and cash equivalent with the stock broker and with the clearing corporation/clearing member should always be equal to or greater than clients' funds as per the ledger balance.

I. No regulatory update during the month of February 2024.

I. SEBI has issued new list of goods notified vide notification dated 01^st March 2024 which includes additional thirteen (13) goods and alloys for five (5) metals thereby increasing the list of goods on which derivatives can be launched from 91 to 104.

II. SEBI has decided to extend the framework of Qualified Stock Brokers to more Stock Brokers and prescribed additional parameters for designing a stockbroker as QSB.

III. SEBI has shared notification of Department of Revenue, Ministry of Finance vide Gazette Notification S.O. 1339(E) dated 14^th March 2024 notifying another 4 entities in addition to 155 and 39 entities notified

vide gazette notification S.O. 3187(E) dated 13^th July 2022 and S.O. 446(E) dated 30^th January 2023 respectively to undertake Aadhaar authentication services of UIDAI under section 11A of the Prevention of Money-laundering Act, 2002.

Your Company has put in place an Enterprise Risk Management (“ERM”) framework to enable and support achievement of business objectives through identification, evaluation, mitigation and monitoring of risks applicable to your Company. The framework includes, among other elements, a risk appetite or risk tolerance policy with clear quantitative metrics and thresholds to monitor the performance of the Company's risk appetite.

Your Company has a comprehensive Risk Management Policy for managing risks such as Financial, Operational, Technology, Sectoral, Sustainability (particularly Environmental, Social and Governance related risks), Regulatory and Compliance, Business, Credit, Market, People, Legal, Reputational, Subsidiary Risks and Black Swan events related risks.

The Company has a Risk Management Committee (RMC), which is constituted by Board of Directors for, inter-alia, identification, measurement and monitoring the risk profile of the Exchange. As on 31^st March 2024, the RMC comprised of three Public Interest Directors and an Independent External Expert. RMC periodically reviews the Risk Management Policy and its implementation thereon, along with the comprehensive Risk Register. The Committee also periodically examines and evaluates the Risk Management Information Systems (RMIS) covering the existing as well as emerging risks. The risks pertaining to internal controls over financial reporting is reviewed by the Audit Committee. The Chief Risk Officer (CRiO) review internal and external audits conducted by external auditors, encompassing financial, operational, system, and cyber aspects. The ERM department identify areas of risk and work closely with functional departments to implement mitigation strategies. The CRiO oversees overall risk management of the Company and submits a report to SEBI on a half-yearly basis.

The matters relating to mitigation of risks in Technology, Information and Cyber Security, Business Continuity and Disaster Recovery is overseen by the Standing Committee on Technology.

The organization provides for three lines of defense construct where: i. the first line of defense incorporates business units and support functions as it has the responsibility to own and manage risks associated with day to day operational activities. ii. the second line of defense comprises of various oversight functions i.e., regulatory, risk management, compliance teams, and iii. the third line of defense comprises the internal audit function.

For details relating to ‘Risks and Concerns' of your Company please refer to the Management Discussion and Analysis section forming part of this Annual Report.

Your Company has set up Multi Commodity Exchange Investor Protection Fund (IPF), to protect and safeguard the interest of investors/clients, with respect to eligible/legitimate claims arising out of default of a member on the Exchange. The interest income received on investment of surplus funds of IPF is used for imparting investor/ client education, awareness, undertaking research activities or such other programs as may be specified by SEBI from time-to-time.

Currently, the applicable IPF compensation limit is ' 25 lakhs per client, with no member-wise limit for SEBI- registered members declared defaulter on or after 24^th January 2018. Further, the limits of ' 2 lakhs per investor per defaulter member and ' 200 lakhs per defaulter member shall continue to be applicable for claims against members, declared defaulter prior to 24^th January 2018 and for non-SEBI registered members. As on 31^st March 2024, the corpus of IPF (provisional) stood at ' 2,27,76,30,661/-.

Your Company has also set up an Investor Service Fund (ISF) for providing, inter-alia basic minimum facilities at various Investor Service Centres. The Company has set up 10 (Ten) Investor Service Centres across India till date. SEBI has permitted the Exchanges to utilize the corpus of ISF for conducting various investor education and awareness programs, capacity building programs and maintenance of all price ticker boards installed by the Exchanges, etc. In addition to above, the corpus may be utilized in any other manner as prescribed/ permitted by SEBI in the interest of investors from time-to-time.

Your Company has transferred 1% of the turnover fees charged from its members on a monthly basis to ISF. As on 31^st March 2024, the corpus of ISF stood at ' 8,70,86,401/-.

In order to enhance literacy and to promote investor education and awareness in the commodity derivatives market, around 2256 awareness programs (seminars/webinars) were conducted under the banner of ISF in FY 2023-24. Out of these programs/webinars, over 259 programs were RISA seminars/webinars conducted jointly with SEBI. In FY 2023-24, the Exchange has conducted awareness programs across India, for investors, students, FPOs, hedgers, physical market participants/stakeholders, micro small and medium enterprises (MSME's), corporates, etc. from the bullion industry, metal industries, energy markets and agricultural sector including farmers, farmer producer organizations (FPO's).

World Investor Week (WIW) was celebrated from 09^th October 2023 till 15^th October 2023 throughout India under the aegis of SEBI & IOSCO.

• Total over 187 awareness programs were conducted across India during WIW, which had over 9849 participants.

• Awareness programs across commodities were conducted with several prominent Institutes, State and National Universities, Trade Associations and Chambers of Commerce under the aegis of ISF.

The objective of MCX IPF is to spread mass awareness and educate commodity market stakeholders. During FY 2023-24, a number of investor awareness activities were carried through various media across (digital, electronic and print modes).

‘A Monk Who Trades' Investor Awareness Comic Series was published in newspapers.

MCX IPF successfully organized the 6^th edition of ‘MCX-IPF COMQUEST' - 2023-24, its premier, National-level Commodity Market Educational Quiz for students. This year, around 6000 individual students, from over 480 institutes across India participated in the competition, making it the largest number amongst all previously held editions.

Your Company continues to reach out to various academic institutions to enhance knowledge about commodity derivatives, commodity eco-system and role of exchange traded derivatives market in facilitating derivatives trading for price risk management and price discovery.

To achieve the said objectives, your Company during FY 2023-24:

i. Certification courses such as MCX Certified Commodity Professional (MCCP), MCX Certified Index Professional (MCIP) MCX Certified Commodity Options Professional (MCOP) examination;

ii. Launched Joint Certification Programmes (JCP) with various academic institutions;

iii. Carried out multiple engagement programmes towards imparting education and awareness among academia, students covering over 180 B-Schools, Colleges, academic bodies, etc.

iv. Successfully concluded the VI^th edition of MCX-IPF COMQUEST All India commodity quiz which saw a record number of participation from both the academic institutions and their students. For the first time Zonal Finals across all 4 zones were also conducted this year.

Consequent to the transfer of clearing and settlement division of the Exchange to Multi Commodity Exchange Clearing Corporation Ltd. (MCXCCL) w.e.f. 01^st September 2018, physical deliveries of the commodities traded on the Exchange platform are effected through MCXCCL.

MCXCCL ensures that the members of MCX and their constituents are provided with warehousing arrangements and associated facilities like testing etc. Those willing to store goods and give delivery on the Exchange platform get these facilities for commodities traded on MCX in Bullion, Metals and Agricultural segments. To facilitate this, MCXCCL verifies and accredits warehouses and vaults across various delivery centres. It operates only with electronic receipts of goods stored in MCXCCL accredited warehouses/vaults on a highly efficient digital platform. In order to keep a check on compliance, correct the deficiencies and enhance market confidence, MCXCCL has an elaborate warehouse and vault inspection activity in place.

MCXCCL has a wide network of warehouses/vaults for delivery of commodities traded on MCX platform. This provides confidence to members to trade on MCX. As on 31^st March 2024, MCXCCL has entered into agreements with five Warehouse Service Provider (WSPs) for facilitating physical deliveries in agricultural commodities and base metals. As on 31^st March 2024, MCXCCL is operating from 28 accredited warehouses of which 12 warehouses are registered with Warehousing Development and Regulatory Authority (WDRA). The remaining 16 warehouses for metals do not require WDRA registration.

Further, MCXCCL has entered into agreements with 4 Vault Service Provider (VSPs) for facilitating physical deliveries in bullion. There are 25 accredited vaults of these agencies located at different delivery centre.

MCXCCL, a wholly-owned subsidiary of your Company, was set up as a separate clearing house for providing Clearing and Settlement services to the Company. MCXCCL performs risk management of the trades executed, collects margin from the members, effects pay-in and pay-out and oversees delivery and settlement processes. SEBI had granted renewal of recognition to MCXCCL to act as a Clearing Corporation for a period of three years commencing from 31^st July 2019 and ending on 31^st July 2022. SEBI vide its letter dated 19^th May 2022, has granted renewal of recognition to MCXCCL, to act as a Clearing Corporation for a period of further three years commencing on 31^st July 2022 and ending on 30^th July 2025, subject to complying with all Rules, Regulations, guidelines and other instructions as may be issued by SEBI from time to time.

Risk management being an important function for a clearing corporation, MCXCCL has a well-defined Risk Management Framework and Risk Management Policy in place. This works at various levels across the enterprise to form a strategic defence cover for the Company. MCXCCL has constituted a Risk Management Committee, which periodically monitors and reviews Risk Management plan and the implementation of SEBI norms on Risk Management and recommends to the Board any modifications to the Risk Management Policy.

MCXCCL is recognized as a Qualifying Central Counterparty (QCCP) by SEBI. This enables the participants to apply lower risk weightage towards their exposures to MCXCCL as per Basel II capital adequacy framework. It has membership of CCP12, the renowned global association of Central Counterparties and membership of Asia-Pacific Central Securities Depository Group (ACG).

During the year under review, there was no change in the Authorized, Issued and Paid-up Share Capital of MCXCCL. As on 31^st March 2024, Authorized Share Capital of MCXCCL stood at ' 30,000 lakh and issued and paid-up share capital stood at ' 23,999 lakh. The net worth as at 31^st March 2024 was ' 48,817 lakh.

SEBI vide circular no. SEBI/HO/CDMRD/DRMP/CIR/2018/111 dated 11^th July 2018, issued norms related to computation of SGF requirement and standardized stress testing for credit risk in commodity derivatives. The total Core SGF as on 31^st March 2024 stood at ' 78,056 lakh, of which ' 14,485 lakh has been contributed by MCX, ' 43,451 lakh has been contributed by MCXCCL and ' 20,120 lakh has accrued from penalties, interest and other accruals.

Your Company entered into a Shares Sale/Purchase and Shareholders Agreement with Central Depository Services Limited (CDSL) and CDSL Commodity Repository Ltd. (CCRL) effective 18^th May 2018, for setting up and operationalization of a new repository under the Warehousing (Development and Regulation) Act, 2007. Pursuant to Section 2(6) of the Companies Act, 2013, CCRL became an associate Company of MCX w.e.f. 04^th June 2018, consequent to investment of ' 1,200 lakh comprising of 12,000,000 equity shares of ' 10 each, equivalent to 24% stake in CCRL.

MCX, National Stock Exchange of India, National Securities Depository Limited, Central Depository Services Limited and BSE's subsidiaries India INX International Exchange and India International Clearing Corporation have joined hands for setting up of Market Infrastructure Institutions (MIIs) comprising of International Bullion Exchange, Clearing Corporation and Depository Company at Gujarat International Finance Tec-City (GIFT) via a Holding Company i.e. India International Bullion Holding IFSC Limited (IIBH), as per the Regulations issued by International Financial Services Authority (IFSCA).

This move is in line with the government's objective to make India a price-setter in bullion trade through GIFT International Finance Service Centre. It will help in efficient price discovery in domestic market given the fact that India is the second largest consumer of Gold. The Exchange would present an opportunity for all stakeholders including MCX to expand their scope of business.

Accordingly, MCX, along with all other consortium partners, contributed ' 3,000 lakh each comprising of 30,00,00,000 equity shares of ' 1 each equivalent to 20% stake in IIBH as on 31^st March 2024.

During the year under review, there were no companies which have become or have ceased to be the joint venture of your Company.

Further, the Managing Director & CEO of your Company does not receive any remuneration or commission from its subsidiary.

A report on the performance and financial position/salient features of the subsidiary and associate companies as per the Companies Act, 2013 is provided as Annexure I.

In accordance with Section 136(1) of the Companies Act, 2013, the financial statements including standalone and consolidated financial statements and all other documents required to be attached thereto and audited annual accounts of MCXCCL, the subsidiary Company, are available on our website at the weblink https://www.mcxindia.com/investor-relations HREF="http://www.mcxindia.com/investor-relations">.

Management Discussion and Analysis Statement, as stipulated under the SEBI (LODR) Regulations, 2015, forms a part of this Annual Report.

Your Company continues its journey of delivering value to all its stakeholders through investments in quality programs. Your Company has been enabling excellence in product and service delivery through compliance of robust processes, quality management system, customer centricity and risk mitigation. Your Company has adopted several external benchmarks and certifications to validate the processes and controls implemented across the Exchange.

Your Company resolves to maintain its pre-eminent position in the Commodity space, hence is proactively investing towards building robust and Scalable Technology Platform like Commodity Derivatives Platform to support its future business growth and regulatory compliance.

Despite the FY 2022-23 being full of unprecedented challenges, your Company was successful in upholding its commitment towards compliance with and adherence to international best practices as laid out in ISO standards such as ISO 27001:2013 (Information Security Management System), ISO 22301:2019 (Business Continuity Management Systems) & ISO 9001:2015 (Quality Management Systems). Your Company successfully re-certified all aforementioned standards. As a part of its commitment to its subscribers, trading members, and the partner ecosystem, your Company also undertook proactive audits to strengthen its core processes, cyber security posture and adherence to regulator guidelines, as they came into effect. Your Company is happy to report that despite issues posed by the pandemic, the organization has successfully evolved to adapt to the new-normal, and that all security incidents were contained to have a zero effect on the trading platform, or systems of our subscribers and trading partners.

It is the constant endeavor of your Company to hire and retain the top talent. The Company has invested in senior leadership resources and strengthened the middle management layer.

Your Company regularly undertakes research for developing new products against the backdrop of evolving market needs, changing policy and regulatory landscape and global best practices. Following research in market demand and after receiving regulatory approvals, your Company launched futures contracts in Steel Rebar on 15^th January 2024. Likewise, research on market demand led your Company to launch Crude Oil Mini Options contracts with Crude Oil Mini (10 barrels) Futures as underlying and Natural Gas Mini Options contract with Natural Gas Mini (250 mmbtu) Futures as underlying with effect from 23^rd April 2024. Such product-based research were also carried out in other commodities and variants of existing derivative contracts, on which the Exchange shall launch products at opportune times and after receiving due regulatory approvals.

In accordance with SEBI guidelines on utilisation of IPF interest income on research activities, your Company undertook four research studies during the year FY 2023-24 on various themes connected to commodity derivatives market. The studies were 'Hedging of Price Risks in Base Metals' undertaken by ICFAI Business School, 'Initiatives for Achieving Atmanirbhar Bharat - Impact on Physical Commodity Markets and Exchange Ecosystem', undertaken by IIT Kharagpur, 'Hedging of Price Risks in Energy Commodities', undertaken by UPES and a Publication on Mentha Oil undertaken by Transgraph Consulting. Further, two research studies, initiated in FY 2022-23, were completed during FY 2023-24. These are 'Developmental Measures for Promoting and Sustaining Commodity Derivatives Contracts undertaken by KPMG Assurance and Consulting, and 'Analyzing Costs and Benefits of Flexibility in Contract Design on Development of Commodity Derivatives Market' undertaken by NIT Rourkela.

The reports of the research studies have been widely publicized through the Exchange's website and social media accounts and the printed copies of the reports compiled and circulated among policy circles, educational institutions, regulatory bodies etc. Besides, the findings of the studies are also being disseminated through articles published in the print media and also widely-publicized awareness events.

To spread awareness and promote research in commodity markets and its ecosystem, your Company publishes an annual publication titled ‘Commodity Insights Yearbook'. The Commodity Insights Yearbook 2023 was a joint initiative of MCX IPF and Indian Institute of Management Bangalore. The Yearbook, released by Shri G.P. Garg, Executive Director - SEBI at a knowledge-sharing session on 12^th October 2023, is a compilation of research articles and useful data on commodity markets. The theme for the 2023 edition of the publication was ‘Agricultural Commodities' and, like in earlier years, the Yearbook, together with relevant data in user- friendly spreadsheets, was made available for free download on the Exchange's website to ensure maximum dissemination. Copies of the Yearbook were also widely circulated among academicians, libraries, and other stakeholders.

Apart from the annual Commodity Insights Yearbook mentioned above, a monthly newsletter ‘Commodity Connect' is widely circulated and uploaded on the website, which is another effective tool used to regularly communicate with the Exchange's stakeholders.

During the FY 2023-24, your Company also engaged with a number of educational institutions and participated in research conferences conducted by institutions such as India Gold Policy Centre at IIM Ahmedabad, apart from conducting and participating in training and awareness sessions at a number of educational institutions across the country.

Your Company has very low impact on environment. Your Company is governed by effective Environmental Policy, and it always strives to ensure that any of its activity has a low or no impact on the Environment. It uses the resources such as electricity in an effective manner and follows strict schedule in all its operations. All the equipment's have long usable life to reduce waste generation. Your Company creates adequate awareness amongst its employees and vendors to adopt environmental conservation practices as an ongoing basis in all their processes. Your Company has environmental impact plan and accordingly checks and monitors the harmful effects to the environment.

Your Company has E-waste policy for safe disposal of E-waste through approved e-recyclers in eco-friendly manner. Your Company has adopted many conservation measures such as tap aerators, rainwater harvesting, cold fogging and password enabled printers to reduce wastage and other harmful effects to the environment.

Your Company has used Lithium Ion batteries for their UPS system which has a long durable life w.r.t standard batteries.

Your Company has recently taken an initiative to install Retro emission Control Devices (RECD) on their Diesel Generator sets which traps Particulate matter (PM) and restricts it from releasing in the air promoting healthy environment practices.

Your Company monitors environmental pollution through stack emission monitoring, Noise Pollution test, Indoor air quality and ambient air quality.

The Company has constituted a CSR Committee in accordance with Section 135 of the Act.

Embedded in the vision and mission of your Company, CSR has always been considered as an opportunity to serve the nation and to bring a perceptible change in the lives of the people. Focused on the community priorities, your Company regularly aligns its strategy, by constantly expanding its CSR outreach for the inclusive growth and development of the society, the Company has been an active citizen and is proactively working on causes of nation building.

The CSR allocation for FY 2023-24 was ' 284 lakh. Your Company has made specific allocations towards:

• Supporting transportation facility for commuting for the disabled, marginalized children from far flung villages to their school and vice-e-versa, to reduce the dropout rates of the students and to provide a safe mode of transportation.

• Supporting financial assistance for construction of school/ classrooms for underprivileged children which will help in receiving quality education.

• Supporting running cost of school and education sponsorship program for the underprivileged students to get facilities like uniform, stationaries, books, electricity facility, internet facility, teachers' salary etc.

• Providing financial support for free medical care to underprivileged, destitute women for their medication, investigations and surgery, post operative healthcare.

• Provide funding for laptops, which shall be used to run digital literacy course and develop managerial skills for self-help groups.

• Provide support for skill development programs/Livelihood for person with Intellectual Disabilities.

The interventions during the year epitomize the conviction of your Company to serve and empower the needy communities and to contribute towards the development of the nation. Going forward, your Company aims to further strengthen its initiatives and continue to serve the society at large.

The brief of the CSR activities undertaken during the year have been provided in the Annual Report on CSR activities forming part of this Report as Annexure II.

The CSR Policy formulated in accordance with the Companies Act, 2013 (as amended from time to time), guides the Company's CSR approach to sub serve the well-being of the society at large. The CSR Policy and initiatives adopted by the Company on CSR are available at the web link https://www.mcxindia.com/about-us/ csr.

The Business Responsibility and Sustainability Report (BRSR) of the Company for the Financial Year 2023-24, as required under Regulation 34(2)(f) of the SEBI (LODR) Regulations, 2015, is a part of this Annual Report and also available on the website of the Company at www.mcxindia.com. The BRSR provides insights on the initiatives taken by the Company from an environmental, social and governance perspective. The Company regularly carries out several initiatives that contribute to the sustainability and well-being of the environment and the communities in which it operates. The Company also recognises the importance of sustainability and is committed to conserve the ecological integrity of its locations through responsible business practices. Sustainability is thus a core agenda for the Company.

Your Company adheres to high ethical standards to ensure integrity, transparency, independence and accountability in dealing with all stakeholders. Accordingly, your Company has adopted various codes and policies to carry out the duties in an ethical manner. Some of these codes/policies framed and implemented by your Company are the Code of Conduct, Code of Practices and Procedures for Fair Disclosures of Unpublished Price Sensitive Information, Code of Conduct for Prevention of Insider Trading, Whistle Blower Policy/Vigil Mechanism, Policy on Related Party Transactions, Policy for determining Material Subsidiaries, Corporate Social Responsibility Policy, Risk Management Policy, Nomination and Remuneration Policy, Policy for Appointment of Independent External Persons on Committees of the Board, Board Diversity Policy, etc.

Your Company has adopted a well-defined Nomination & Remuneration Policy for Directors, Key Managerial Personnel formulated in terms of the provisions of SECC Regulations, 2018, Companies Act, 2013 and SEBI (LODR) Regulations, 2015. The said Policy is available under the weblink https:// www.mcxindia.com/investor-relations/corporate-qovernance.

The ratio of the remuneration of each Director and KMP to the median employee's remuneration and other details in accordance with Section 197 (12) of the Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 and Regulation 27(6) of the SECC Regulations, 2018, forms part of this Report as Annexure III.

Further, in accordance with Section 197 (12) of the Companies Act, 2013 read with Rule 5 (2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, and Regulation 27(5) of SECC Regulations, 2018, a statement containing particulars of employees as stipulated therein also forms part of this Report as Annexure IV.

Your Company believes in the conduct of the affairs of its constituents in a fair and transparent manner by adopting highest standards of professionalism, honesty, integrity and ethical behaviour. Pursuant to Section 177(9) of the Companies Act, 2013 read with Rule 7 of the Companies (Meetings of Board and its Powers) Rules, 2014 and Regulation 22 of the SEBI (LODR) Regulations, 2015, the Board of Directors have implemented a vigil mechanism through the adoption of a Whistle Blower Policy which has been amended from time to time. The said policy is available on the website of the Company at https://www HREF="http://www.mcxindia.com/investor-relations/corporate-governance">. mcxindia.c om/in