DIRECTORS' REPORT

FINANCIAL HIGHLIGHTS

For FY 2025-26, your Company's (Standalone) total income
stood at '2,281.76 crores as compared to '1,107.37 crores
in FY 2024-25. The operating income during the year
under review was '2,153.67 crores as against '1,011.58
crores in FY 2024-25. Net profit after tax in FY 2025-26
was '1,029.04 crores as compared to '414.78 crores in
FY 2024-25.

The net worth of the Company as at March 31,2026 stood
at '2,816.24 crores as compared to '1,927.50 crores as at
March 31,2025.

CONSOLIDATED FINANCIAL STATEMENT

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, Countrywide Commodity
Repository Limited and India International Bullion Holding
IFSC Limited. 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.

TRADING PERFORMANCE

During FY 2025-26, the Average Daily Turnover (ADT) of
commodity futures contracts stood at '64,407 crore vis-a¬
vis '27,153 crore in FY 2024-25, witnessing a rise of 137%.
However, during the same period, the options notional
ADT went up by 146% to '4,71,641 crore from '1,91,910
crore. The Realization Rate (RR) for the futures stood at
'2.10 per lakhs vis-a-vis '2.08 per lakhs (each side) during
the previous year. Overall traded Unique Client Codes for
futures and options (UCC - PAN based) during the period
increased to 20.9 lakhs from 13 lakhs in the previous year.

The total turnover of commodity futures traded on
your Exchange increased by 136% to '165 lakh crore in
FY 2025-26 as against '70 lakh crore in FY 2024-25.
Further, options turnover for the year went up by 145%
to a record total turnover of '1,212 lakh crore as against
'495 lakh crore in the previous year. The futures in bullion,
energy, metals and agriculture registered a turnover of
'129.1 lakh crore, '24.5 lakh crore, '11.9 lakh crore and
'0.02 lakh crore, respectively, as against '45.2 lakh crore,
'16.7 lakh crore, '8.1 lakh crore and '0.03 lakh crore in
the previous year. On the other hand, options turnover in
energy, bullion and metals recorded total of '514.9 lakh
crore, '690.7 lakh crore and '6.6 lakh crore, respectively,
during FY 2025-26 vis-a-vis '402 lakh crore, '92.6 lakh
crore and '0.5 lakh crore, in the previous year.

I n terms of metal delivery, a total of 95,781 metric tonnes
(MT) of Base Metals were delivered through the exchange
mechanism during FY 2025-26 as against 69,383 metric
tonnes in FY 2024-25. This is highest ever in a financial year
since conversion to delivery settled in FY 2019-20. During
FY 2025-26, your Company's market share in commodity
futures market stood at 99.07% as against 98.1% in the
previous year. The volume of futures (in terms of contracts)
traded on the Exchange increased by 100% in FY 2025¬
26, to 322 million lots, as compared to 161 million lots in
FY 2024-25. On the other hand, the volume of Options (in
terms of contracts) traded increased by 99% in FY 2025¬
26, to 1,626 million lots, as compared to 815 million lots in
FY 2024-25.

GLOBAL COMMODITY MARKET

In 2025, global commodity markets saw mixed trend.
Precious metals and industrial metals ended the year with
strong demand and close to their highest prices of the year,
while prices of energy and agricultural commodities were
low due to high supply and weak demand. For precious
metals, heavy buying by central banks and investors
looking for safety pushed gold up 65% to end the year
at USD 4,325.6 per troy ounce (ranging from USD 2,617.3
to USD 4,556.3 during the year) on COMEX (CME Group),
while silver jumped 142% to close at USD 70.13 per ounce
(ranging from USD 28.31 to USD 79.70 in 2025) on the
same Exchange. Prices of industrial metals also grew due
to lower mining supply and hopes for economic support,
with copper rising 42% to USD 12,423 per tonne and
aluminium gaining 17% to USD 2,995.5 per tonne, while
zinc, lead, and nickel saw smaller gains - all on the London
Metal Exchange. In contrast, energy markets cooled as
high oil production from non-OPEC countries reduced
shortages that had arisen earlier, pulling WTI crude oil
down 20% to close at USD 57.42 per barrel on NYMEX
(CME Group), while natural gas ended almost fiat at USD

3.69 per MMBtu on NYMEX despite volatile price swings
caused by weather. Finally, agricultural commodities
ended the year with mixed results because of changing
weather and low global demand; soybeans prices went up
3% to USD 10.31 per bushel on CBOT (CME Group), but
wheat dropped 8% to USD 5.07 per bushel on the same
Exchange, and cotton fell 6% to USD 0.64 per pound on
ICE USA during the year.

I n 2025, volumes traded on global commodity derivatives
Exchanges rose by 16.65% year-on-year to 10.52 billion
contracts, according to the Futures Industry Association
(FIA). Measured by the number of contracts traded, volumes
in Precious Metals, Energy and Non-Precious Metals
increased by about 45%, 30% and 15% respectively, while
those in Agri-commodities dropped by 3.9%, as per FIA data.

The International Monetary Fund (IMF) estimates that
the global economy grew moderately by 3.4% in 2025,
demonstrating strong resilience despite high trade barriers
and geopolitical volatility, surpassing performance levels
of 2024. However, the ongoing war in the Middle East has
disrupted this momentum in 2026. The closure of the Strait
of Hormuz, along with significant damage to critical facilities
in a region vital to global hydrocarbon supply, raises the risk
of a major energy crisis if hostilities persist. The IMF's World
Economic Outlook report of April 2026 projects global
growth for 2026 and 2027 at 3.1% and 3.2% respectively,
driven by increased investments and fiscal spending.

Meanwhile, India would continue to be a bright spot in the
global economy and remain one of the fastest-growing
major economies, notes the IMF. For the year 2026 and
2027, the IMF projects India's economic growth at 6.5%
each year, by positive contributions from the carryover of
the strong 2025 outturn and the decline in additional US
tariffs on Indian goods from 50 to 10 percent, which could
outweigh the adverse impact of the Middle East confiict.

Your Company's performance during the year 2025-26
and outlook during the year 2026-27 may be analysed
against this backdrop.

1. SHARE CAPITAL

During the year under review, there was no change in
the authorized or paid-up share capital of the Company.
However, to enhance market liquidity and expand the
retail shareholder base, the Board of Directors, at its
meeting held on August 1, 2025, approved the sub¬
division (stock split) of 1 (one) equity share of face value
of '10/- each into 5 (five) equity shares of face value of
'2/- each, fully paid-up. This was subsequently approved
by the shareholders at the 23^rd Annual General Meeting
(AGM) held on September 12, 2025, along with the
consequential amendment to the Capital Clause of the
Memorandum of Association (MOA).

Consequent to the sub-division, as of March 31, 2026,
the paid-up equity share capital of the Company stood at
'50,99,83,690/- comprising 25,49,91,845 equity shares of
'2/- each, fully paid-up.

During the period under review, the Company has neither
issued any equity shares with differential voting rights nor
granted any sweat equity shares or stock options to its
employees under any scheme.

3.    IMPLEMENTATION OF CORPORATE ACTION

During the year under review, the Company successfully
implemented its corporate action including the split
of shares as mentioned above within the prescribed
statutory timelines.

4.    TRANSFER TO RESERVES

The Company was not required to transfer any amount of
profits to general reserves for FY 2025-26, pursuant to the
provisions of Companies Act, 2013.

5.    SURPLUS IN PROFIT & LOSS ACCOUNT

An amount of '2,411.24 crores (Previous Year '1,535.20
crores) is proposed to be retained as surplus in the Profit
and Loss Account.

6.    DIVIDEND

The Board of Directors of your Company in its meeting
held on May 08, 2026, have recommended a dividend of '8
(400%) per equity share on a face value of '2 per share for the
Financial Year ended March 31, 2026, 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 400%
(Previous Year 300%) to be paid by the Company aggregates
to approximately '203.99 crores, being a payout of 20%
of the profit after tax (PAT) for the year ended March 31,
2026, as against '153 crores during the previous year.
Shareholders holding shares as on Friday, August 28, 2026,
("Record Date"), will receive the dividend, which will be paid
within statutory timelines after tax deductions.

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.

As per Income-Tax Act, 1961, 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 24^th AGM.

7.    MEMORANDUM AND ARTICLES OF
ASSOCIATION

During the year under review, after receipt of approval of
the Board of Directors, shareholders at the Annual General
Meeting held on September 12, 2025 and approval of SEBI,
the Capital Clause of the Memorandum of Association ('MOA')
of the Company was revised from '70,00,00,000 (Rupees
Seventy crores) divided into 7,00,00,000 (Seven crores)
equity shares of '10/- (Rupees Ten) each to '70,00,00,000
(Rupees Seventy crores) divided into 35,00,00,000 (Thirty-
Five crores) equity shares of '2/- (Rupees Two) each due to
the sub-division/split of existing equity shares.

8.    INVESTOR RELATIONS

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.

9.    MAJOR EVENTS OCCURRED DURING THE YEAR:

A.    EVENT OCCURED FROM THE END OF THE
FINANCIAL YEAR TILL THE DATE OF THIS REPORT

There are no material changes and commitments
affecting the financial position of the Company
which have occurred between the end of the FY
2025-26 to which the financial statement relate and
the date of this Report.

B.    CHANGE IN THE NATURE OF BUSINESS:

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

C.    SIGNIFICANT AND MATERIAL ORDERS PASSED
BY THE REGULATORS OR COURTS OR TRIBUNALS
IMPACTING THE GOING CONCERN STATUS AND
COMPANY'S OPERATIONS IN FUTURE

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. However,
key orders passed by the Regulator is disclosed in
Corporate Governance Report.

TRANSFER OF SHARES

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. Members
who have not encashed any of their dividends, which
have not been transferred to IEPF Authority, are advised to
claim their dividends.

Accordingly, 969 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 November 05, 2025, were transferred during the FY
2025-26 to the IEPF Authority on November 05, 2025 after
following the prescribed procedure.

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).

The Shareholders whose unclaimed dividend(s) and/or
share(s) have been transferred to IEPF, may contact the
Company or Registrar & Transfer Agent (RTA) and submit
the required documents for issuance of Entitlement Letter.
The Shareholders shall attach the Entitlement Letter and
other required documents and file web Form IEPF-5
available on www.mca.gov.in for claiming the dividend(s)
and/or share(s).

No claims shall lie against the Company in respect of the
unclaimed dividends and shares transferred to the IEPF
Authority and all benefits accruing on such shares, if any,
shall also be transferred to the IEPF Authority.

11.    PUBLIC DEPOSITS

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 March 31,2026

12.    PARTICULARS OF LOANS GIVEN, INVESTMENTS
MADE, GUARANTEES GIVEN OR SECURITY
PROVIDED UNDER SECTION 186 OF THE
COMPANIES ACT, 2013

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 March 31, 2026, 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.

13.    MEETINGS OF THE BOARD

During FY 2025-26, 24 (Twenty-Four) 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 May 07, 2025, September 12, 2025 and March 06,
2026.

14. DIRECTORS

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 (Listing Obligations and Disclosure Requirements)
Regulations, 2015 (hereinafter referred to as 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 capital markets, finance and
accountancy, legal and regulatory practice, technology,
risk management and management or administration. 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 March 31, 2026, the Board comprised of 8 (eight)
Directors, of which 5 (five) were Public Interest Directors
(PID)/Independent Directors, 2 (two) 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 and 1 (One) Women MD & CEO.

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 SEBI, 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
and 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, the first term of Mr.
Ashutosh Vaidya (DIN: 06751825) and Ms. Sonu Bhasin
(DIN: 02872234) were completed on September 16,
2025. Accordingly, upon the recommendation of the
Nomination and Remuneration Committee (NRC) and the
Board of Directors, SEBI vide letter dated July 07, 2025, has
approved the re-appointment of Mr. Ashutosh Vaidya and

Ms. Sonu Bhasin as Public Interest Directors for further
period of 3 years with effect from September 17, 2025.

Pursuant to Section 152 of the Companies Act, 2013
read with relevant rules framed thereunder, Mr. Arvind
Kathpalia (DIN:02630873), Non-Independent Director
(NID) of the Company, was liable to retire by rotation at the
23^rd Annual General Meeting ("AGM") held on September
12, 2025. Accordingly, shareholders at their 23^rd AGM
approved the reappointment of Mr. Arvind Kathpalia as
NID of the Company. His re-appointment was subject
to regulatory approval. SEBI vide letter dated October
01, 2025 approved the re-appointment of Mr. Arvind
Kathpalia as NID of the Company.

Mr. Mohan Shenoi (DIN: 0160360), NID, will be retiring at
the upcoming AGM and has expressed his willingness to
be re-appointed. A resolution requesting shareholders'
approval, along with other necessary details, is included in
the Notice of the 24^th AGM.

During the year under review, SEBI vide its notification
dated November 21, 2025, introduced Regulation 25A
to the SECC Regulations, 2018. This regulation mandates
every recognized Stock Exchange to appoint Executive
Directors as Key Management Personnel (KMP) to head (i)
Critical Operations and (ii) Regulatory, Compliance, Risk
Management & Investor Grievances.

I n alignment with this regulatory requirement and based
on the recommendations of the NRC and approval of
the Board of Directors, SEBI, vide its letter dated May 27,
2026, approved the appointments of Mr. Sanjay Rajpal
(DIN: 00562023) as Executive Director (Critical Operations)
and Mr. Manoj Jain (DIN: 09694205) as Executive Director
(Regulatory, Compliance, Risk Management & Investor
Grievances). Their appointments are for a tenure of 5
(five) years from their respective dates of joining, subject
to a satisfactory performance appraisal after the initial 3
(three) years to continue for the remaining 2 (two) years.

Pursuant to Section 161 of the Companies Act, 2013,
Mr. Manoj Jain and Mr. Sanjay Rajpal were appointed as
Additional Directors with effect from June 1, 2026, and
June 30, 2026, respectively. In compliance with SEBI's
directive dated October 29, 2020, requiring shareholder
ratification for Executive Director appointments following
SEBI approval, the Board sought the approval of the
Members via Ordinary Resolutions through a Postal Ballot
(e-voting process) on July 15, 2026. The results of the
Postal Ballot, along with the Scrutinizer's Report, intimated
to BSE Limited and uploaded to the Company's website
(www.mcxindia.com) as well as NSDL's e-voting platform
(www.evoting.nsdl.com).

Pursuant to appointment of new Executive Directors and
in order to meet the constitution of the Board in terms of
SECC Regulations, 2018, upon the recommendation of the
Nomination and Remuneration Committee (NRC) and the
Board of Directors, SEBI vide letter dated May 27, 2026
has approved the re-appointment of Mr. Santosh Kumar
Mohanty (DIN: 06690879) as Public Interest Director of
the Company. The Board of Directors had approved the
appointment of Mr. Santosh Kumar Mohanty as PID for
period of 3 years with effect from May 28, 2026.

15. INDEPENDENT EXTERNAL EXPERT

During the year under review, the tenure of Mr. R. Anand as
an Independent External Expert in Regulatory Oversight
Committee was completed on September 23, 2025,
pursuant to SECC Regulations, 2018. In view of the same,
Mr. Anjani Agarwal was appointed as an Independent
External Expert in Regulatory Oversight Committee with
effect from September 24, 2025.

During the year under review, the tenure of Dr. Anil
Kumar Sharma as an Independent External Expert in
the Risk Management Committee was completed on
September 22, 2025, pursuant to SECC Regulations, 2018.
In view of the same, Ms. Shalini Chhabra was appointed
as an Independent External Expert in Risk Management
Committee with effect from September 24, 2025.

During the year under review, the tenure of Mr. Dhruvkumar
Patil (Representative of Investor Association) as a Trustee
of MCX Investor Protection Fund Trust ("MCX IPF Trust")
was completed on January 20, 2026, in accordance with
Scheme of MCX IPF Trust dated September 25, 2018,
read with SEBI Circular dated May 30, 2024, regarding
Comprehensive guidelines for Investor Protection Fund
(IPF) and Investor Services Fund (ISF) for Stock Exchanges
having commodity derivatives segment. In view of the
same, Mr. Narendra Mehta (Representative of Investor
Association) was appointed as a Trustee of MCX IPF Trust
with effect from January 21,2026.

During the year under review, Mr. Santanu Paul has
resigned as an Independent External Expert in the Standing
Committee on Technology with effect from January 10,
2026. In view of the same, Mr. Ramesh Loganathan was
appointed as an Independent External Expert in Standing
Committee on Technology with effect from February 20,
2026. Mr. Ramesh Loganathan and Prof. Purushottam
Kulkarni were appointed as Experts on January 26, 2026
on MCX Technology Advisory Group.

During the year under review, tenure of Mr. S V
Krishnamohan as an Independent External Expert in the
Member Committee was completed on March 20, 2026,
pursuant to SECC Regulations, 2018. In view of the same,

Dr. O N Ravi was appointed as an Independent External
Expert in Member Committee with effect from May 08,
2026.

Ms. Vidya Krishnan was appointed as an Independent
External Person on Nomination and Remuneration
Committee (NRC) for the limited purpose of
recommending selection of Executive Director (Critical
Operations). Mr. Santosh Kumar Mohanty was appointed
as an Independent External Person on NRC for the limited
purpose of recommending selection of Executive Director
(Regulatory, Compliance, Risk Management & Investor
Grievances), Upon appointment of Executive Director
(Critical Operations) and Executive Director (Regulatory,
Compliance, Risk Management & Investor Grievances), Ms.
Krishnan and Mr. Mohanty ceased to be experts on NRC.

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.

16. KEY MANAGERIAL PERSONNEL (KMP)/SENIOR
MANAGEMENT PERSONNEL (SMP)

The following employees became KMPs under the SECC
Regulations, 2018 during FY 2025-26:

Mr. Sanjay Rajpal, joined as an Executive Director (Critical
Operations) and KMP on June 30, 2026.

Further, the following employees ceased to be KMPs
under the SECC Regulations, 2018 during FY 2025-26:

Mr. Rishi Nathany ceased to be the Chief Business Officer
and KMP with effect from the closing hours of March 31,
2026.

17. PERFORMANCE EVALUATION OF THE BOARD

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 January 05,
2017 providing guidance to listed entities about various
aspects involved in the Board Evaluation process ("SEBI
Guidance Note") and SEBI circular dated February 05, 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:

i.    Internal Evaluation of Individual    Director's

Performance

Level of participation and contribution to the
performance of Board/Committee(s)    meetings,

qualification & experience, knowledge and competency,
attendance records, disclosures, 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.

ii.    External Evaluation of Individual    Director's

Performance

Pursuant to SECC Regulations, 2018 read with SEBI
Master Circular for Stock Exchanges and Clearing
Corporations, 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 pre-determined criteria.

iii.    Evaluation of the Board as a Whole

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.

iv.    Chairman's Performance Evaluation

Providing effective leadership, Encourages active
engagement among the members of the Board,
manages time well, ensures clarity in decision
making, establishing effective communication with
all stakeholders, etc.

v.    Performance Evaluation of Board Committees

The performances of the Committees are evaluated
based on parameters such as, Roles, Responsibilities
and Duties of Statutory Committees, Effectiveness
of the Committees, Governance Aspects of
Statutory Committees such as Independence of the
Committees from the Board, Contribution to the
decisions of the Board, Good Governance practices,
etc.

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

18. BUSINESS OPERATIONS

The Company is an affiliate member of the International
Organization of Securities Commissions (IOSCO), which
is an international body that brings together the world's
securities regulators and is recognized as the global
standard setter for the securities sector. The Exchange
is ranked world's largest Exchange by the number of
commodity Options contracts traded and Fourth largest
Exchange by the number of Commodity Derivatives
contracts traded during the year 2025. (Source: FIA Annual
Volume trading statistics).

With an aim to seamlessly integrate with the global
commodities ecosystem, MCX has forged alliances with
leading international exchanges such as CME Group and
London Metal Exchange (LME). The Exchange has also
signed Memorandum of Understanding with renowned
global exchanges viz. Dalian Commodity Exchange
(DCE), Taiwan Futures Exchange (TAIFEX), Jakarta Futures
Exchange (JFX), Zhengzhou Commodity Exchange (ZCE)
and European Energy Exchange AG (EEX) to facilitate
cooperation in areas of sharing knowledge and expertise,
education & training, etc. The Exchange also has 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 markets.

Product Segment Highlights

Bullion

A)    MCX Good Delivery Norms:

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/silver on Exchange platform.

Accordingly, MCX empanelled domestic refiners as per 'MCX Good Delivery Norms for BIS-Standard Gold/Silver' effective
from March 06, 2021, has seen a successful delivery of 18,330 kg (valued at ~'16,179 crores) Gold Mini (100 gram) & Gold
Ten (10 gram) Futures contracts (since initiation till March 2026).

B)    The Bullion segment attained various landmarks during FY 2025-26:

I) MCX launched Gold Ten (10 gram) Futures contracts on April 01,2025.

It may be noted that, the performance of Gold Ten futures contract after its launch on April 01,2025 is tabled below:
Table1:

II)    I t is submitted that, MCX introduced the modification in Silver Options contracts with Silver (30kg) and Silver Mini

(5kg) to include monthly expiries on June 16, 2025.

The performance of Silver (30kg) and Silver Mini (5kg) after its introduction on June 16, 2025 are tabled below in Table
2 and Table 3 respectively:

Table 2:

III) Further, the Bullion Options performance (FY 2025-2026) is tabled below in Table 4, Table 5 and Table 6 respectively:
Table 4:

IV)    The following milestones were achieved

in Bullion Futures and Options contract in

FY 2025-2026:

>    Bullion Options (all) registered an all-time
high turnover of '23,59,540 crores on
December 31, 2025

>    Gold Options (all) clocked its highest
turnover of '23,24,741 crores on
December 31, 2025

>    Silver Options (all) achieved all time
high turnover of '12,33,266 crores on
December 24, 2025

>    Bullion Futures (all) registered an all-time
high turnover of '2,99,115 crores on
January 29, 2026.

>    Gold (all) Futures achieved a significant
milestone of '1,97,882 crores turnover
on January 29, 2026.

>    Silver (all) Futures achieved all time high
turnover of '1,01,233 crores turnover on
January 29, 2026.

V)    Notably, MCX witnessed good volumes in

Bullion retail products in FY 2025-2026:

C) A product profile for Bullion has been hosted on
the MCX website to help investors understand
the physical market dynamics and guidance for
trading on the Exchange.

ENERGY SEGMENT PRODUCTS

The year under review was characterized by
heightened volatility across global energy markets,
as geopolitical flashpoints, supply-side disruptions,
shifting trade flows, and the accelerating pace of
the energy transition kept crude oil, natural gas, and
power prices on the move through the year. Recurring
tensions around the Strait of Hormuz, sustained
US-Iran frictions, sanctions-driven realignment of
Russian crude flows, and OPEC+ supply decisions
added multiple layers of uncertainty to global
energy markets. Against this backdrop, value chain
participants increasingly sought robust tools to
manage price risk, and MCX played a pivotal role
in enabling effective risk management by driving
strong volume growth across its crude oil and natural
gas derivatives basket. MCX also gave India its first
domestic reference-based electricity derivatives,
with the launch of Electricity Futures on July 10,
2025, marking a significant milestone in deepening
the country's energy risk management ecosystem.

India's demand for crude oil and natural gas
continued to grow steadily during the year, driven
by rising energy consumption, expanding industrial
and refining activity, and continuous build-out of
downstream capacity. As one of the world's largest
energy importers, the Indian economy remains
structurally exposed to global price shocks, making
the availability of efficient domestic hedging
mechanisms critical to industry and the broader
economy. This underlying demand growth,
together with an increasingly uncertain geopolitical
environment, reinforced the case for deeper and
more liquid crude oil and natural gas derivatives
markets in India. MCX's rupee denominated energy
derivatives further serve as a natural hedge against
currency fluctuations, given that a substantial
proportion of India's crude oil and natural gas

requirements are met through dollar-denominated
imports. By providing an efficient, transparent, and
accessible price discovery and risk management
platform, MCX continued to support value
chain participants in navigating this challenging
environment, thereby strengthening India's energy
security and price risk management framework.

Crude Oil and Natural Gas Derivatives

Crude Oil and Natural Gas derivatives remained the
cornerstone of MCX's energy segment, with the
Exchange cementing its place among the world's
leading energy derivatives platforms. As per Futures
Industry Association (FIA) global rankings for CY
2025 (based on number of contracts traded):

•    MCX Crude Oil (100 bbl) Options - ranked #1

•    MCX Crude Oil Mini (10 bbl) Options - ranked #3

•    MCX Natural Gas (1,250 MMBtu) Options -
ranked #2

•    MCX Natural Gas Mini (250 MMBtu) Options -
ranked #7

These global rankings are a powerful testament to
MCX's deepening liquidity, rising participation, and
growing relevance on the world energy derivatives
stage. Both crude oil and natural gas contracts
delivered robust growth in trading volumes, deeper
liquidity, and sustained expansion in open interest,
reaffirming MCX's position as India's premier
platform for energy price risk management.

Performance Highlights

MCX's Crude Oil and Natural Gas derivatives
delivered a strong FY26 performance. Below are the
key performance highlights:

•    Average Daily Turnover (ADT) of Crude Oil
and Natural Gas futures rose by 47% to
'9,512 crores, up from '6,470 crores in FY25.

•    Combined notional ADT of Crude Oil and
Natural Gas options rose by 28% to '2,00,341
crores, up from '1,55,891 crores from the
previous year.

The Crude Oil and Natural Gas derivatives
segment registered several record milestones
during the year:

•    MCX Crude Oil Options (100 bbl) - highest-ever
turnover since inception of '7,73,344 crore on
February 17, 2026

•    MCX Crude Oil Options (100 bbl and 10 bbl) -
highest combined turnover of '12,59,841 crore
on March 17, 2026

•    MCX Natural Gas Options (1250 MMBtu and
250 MMBtu) - highest combined turnover of
'4,70,929 crores on January 22, 2026

•    MCX Natural Gas Options (1250 MMBtu)
- highest turnover of '2,45,540 crores on
February 20, 2026

Electricity Derivatives

FY 2025-26 marked a significant strategic milestone
for MCX with the launch of Electricity Futures on July
10, 2025, the Exchange's first foray into domestic
reference-based energy derivatives. This new
offering strengthens MCX's energy derivatives suite
and responds directly to the changing contours of
India's power sector, marked by growing market-
based procurement, deepening renewable energy
integration, and heightened electricity price
volatility. Building on its established Crude Oil
and Natural Gas products, MCX now offers market
participants a comprehensive suite of energy risk
management tools spanning oil, gas, and power.

By enabling transparent and efficient price discovery,
the contract provides value chain participants
(VCPs) across the power ecosystem, with a reliable
reference price and an effective tool to hedge against
electricity price volatility, thereby supporting more
informed procurement, sales, and risk management
decisions.

Performance Highlights

Since its launch, MCX Electricity Futures has shown
encouraging early traction, with steady gains
across trading volumes, open interest, and market
participation. Average Daily Volume climbed from
1,313 lots (65,650 MWh) in FY 2025-26 to 1,544 lots
(77,200 MWh) in Q1 FY 2026-27, while Average Open
Interest rose from 1,052 lots (52,600 MWh) to 1,630
lots (81,500 MWh) over the same period (1 lot = 50
MWh).

The contract has drawn increasingly diverse
participation, across value chain, which is a promising
sign for the continued deepening of India's electricity
derivatives market. MCX continues its market¬
building efforts through sustained stakeholder
engagement and policy-level discussions with
relevant regulatory and industry bodies, aimed at
deepening participation and further strengthening
the power ecosystem.

The sustained strengthening of MCX's Crude Oil and
Natural Gas derivatives, together with its strategic
expansion into electricity derivatives, provides the
Exchange with a robust platform for long-term
growth and reaffirms its commitment to supporting
India's evolving energy economy.

Agricultural Commodities

MCX agricultural commodities futures recorded an
average daily turnover of '6.68 crores in FY 2025-26
compared to '10.32 crores in FY 2024-25.

The MCX Cotton contract turnover in FY 2025-26
averaged '0.40 crores, compared to '4.35 crores in
FY 2024-25.

The Average Daily Turnover of Mentha oil contract
stood at '5.28 crores in FY 2025-26, compared to
'5.97 crores in FY 2024-25.

MCX launched the Cardamom Futures Contract
on July 29, 2025. During FY 2025-26 (July 29 to 31
March 31, 2026), the contract recorded an average
daily turnover of Rs 1.00 crore. A total of 3.30 MT
of cardamom was delivered through MCXCCL
accredited warehouses.

Base Metals

In continuous pursuit of the Atmanirbhar Bharat
mission, the Exchange 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 producer,
namely, Jain Resource Recycling Private Limited was
empanelled as MCX approved brands during the
FY 2025-26. This takes the total count of approved
domestic refined lead producers to 7. To enhance
the efficiency of the empanelment process, several
modifications were made to the principal document.

In a major step toward fostering greater self-reliance
in India's domestic base metal sector the Multi
Commodity Exchange of India Limited (MCX), the
nation's premier commodity derivatives exchange,
has issued the 'MCX Good Delivery Norms for
Primary Aluminium Refined Copper, and Refined
Zinc. Through a single comprehensive circular no.
MCX/PMT/329/2026 issued on June 02, 2026, the
Exchange has introduced independent principal
documents for each of these base metals, detailing
the complete process for empaneling metal
producing plants and accepting their deliveries
toward contract settlements. This initiative
strengthens the ecosystem of MCX-approved brands
that meet rigorous quality and process standards.

Also, to improve the participations, rationalization of
striker intervals was made in Copper & Zinc options:

-    Copper option Strike Price Interval from '5 to '10

-    Zinc option Strike Price Interval from '2.50 to '5

Exchange has reduced the staggered delivery period
to 3 days effective from January 2025 expiries.

Some of the important highlights of Base Metals in
the year 2025-26 are:

1.    In all 95,781 MT of base metals were delivered
via the Exchange settlement in FY 2025-26.

2.    The cumulative deliveries via exchange
settlement went past 5,59,317 MT since the
year 2019 when those were converted to
delivery settled contracts.

3.    Average daily OI, all metals combined for the
year was 87,174 MTs with Aluminium and
Copper top performing.

4.    Similarly, Average daily volume, all metals
combined was 71,367 MTs. Copper and Zinc
Volume outperformed in the segment.

Index Derivatives

The Average Daily Turnover (ADT) for FY 2025-26
for BULLDEX Index futures was '7 crores and
for BULLDEX Index Options was '0.7 crores. The
Exchange is reaching out to the market participants
for increased participation in the index products.

Market Participants

In FY 2025-26, on the Institutional front, Average
Daily Turnover (ADT) in the FPI category was '11,735
crores and in the DII category was '285 crores.
There has been healthy new additions of schemes
of Mutual Funds, AIF Category III funds and Foreign
Portfolio Investors (FPIs).

On February 26, 2026, SEBI has come out with a
circular on Valuation of physical Gold and Silver
held by mutual fund schemes. Consequently, the
Exchange has reached to all the Mutual Fund houses
with Gold and Silver ETFs to use MCX Spot Prices
for valuing the physical Gold and Silver held by the
scheme.

19. REGULATORY DEVELOPMENTS- FY 2025-26

During the year under review, SEBI has issued Master
Circulars for Stock Brokers, prescribed Standardized
format for System and Network audit report of Market
Infrastructure Institutions (MIIs), provided clarification to
Cybersecurity and Cyber Resilience Framework (CSCRF) for
SEBI Regulated Entities (REs), prescribed norms for Internal
Audit mechanism and composition of the Audit Committee
of the Market Infrastructure Institutions, Accessibility and
inclusiveness of Digital KYC to Persons with Disabilities, has
prescribed guidelines regarding Process for appointment,
re-appointment, termination or acceptance of resignation
of specific KMPs of an MII and Cooling-off period for KMPs
of an MII joining a competing MII and provisions relating
to re-appointment of PIDs, Review of provisions relating
to Product Advisory Committee (PAC), has extended the
Adoption and Implementation of Cybersecurity and Cyber
Resilience Framework (CSCRF) for SEBI Regulated Entities
(REs), Rights of Persons with Disabilities Act, 2016 and rules
made thereunder- mandatory compliance by all Regulated
Entities, has prescribed norms for Review, Appeal or Waiver
of penalty requests emanating out of actions taken by the
Member Committee, Ease of doing business (EODB) - Policy

for joint annual inspection by MIIs - information sharing
mechanism- action by Lead MI, has provided Technical
Clarifications to Cybersecurity and Cyber Resilience
Framework (CSCRF) for SEBI Regulated Entities (REs), has
provided clarification on Digital Accessibility SEBI circular,
has prescribed provisions relating to strengthening
governance of MIIs (Appointment of EDs for vertical 1
& vertical 2), has made revisions to the framework to
address the 'technical glitches' in Stock Brokers' Electronic
Trading Systems, has revised the framework pertaining to
Capacity planning and Real time performance monitoring
framework for Commodity Derivatives segment of MIIs, As
a part of Ease of doing investment has prescribed norms
for disclosure of registered name and registration number
by SEBI regulated entities and their agents on Social Media
Platforms, has revised the norms pertaining to coverage
of Settlement Guarantee Fund for Commodity Derivatives
Segment.

20. RISK MANAGEMENT AND RISK MANAGEMENT
POLICY

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, risk appetite statements, thresholds and metrics
to monitor the risk to the Company.

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, etc.

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 March 31, 2026, the RMC
comprised of three Public Interest Directors, a Non¬
Independent Director 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 ERM department identify areas
of risk along with functional departments and work with
departments to implement mitigation strategies.

The Chief Risk Officer (CRiO) oversees overall risk
management of the Company and submits a report to
SEBI on a half-yearly basis after presenting to RMC and
the governing board. CRiO reviews the risk registers
of all functions, and also takes into consideration the
observations, if any, from audit reports encompassing
financial, operational, system, and cyber aspects for
identification of risk and in implementing mitigation
measures.

The organization provides for three lines of defence
construct where: i. the first line of defence 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
defence comprises of various oversight functions i.e.,
regulatory, risk management, compliance teams, and
iii. the third line of defence 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.

21. INVESTOR PROTECTION FUND (IPF) AND
INVESTOR SERVICE FUND (ISF)

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 or 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. As on
March 31,2026, the corpus of IPF stood at '320.79 crores.

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
March 31 , 2026, the corpus of ISF stood at '28.98 crores.

In order to enhance literacy and to promote investor
education and awareness in the commodity derivatives
market, more than 2600 awareness programs (seminars/
webinars) were conducted under the banner of ISF in
FY 2025-26. Out of these programs/webinars, over 210
programs were Regional Investor Seminar for Awareness
(RISA) conducted jointly with SEBI. In FY 2025-26, the
Exchange has conducted awareness programs across India,
for Investors, Students, Farmer Producer Organizations
(FPO's), Hedgers, Physical Market Participants/
Stakeholders, Micro Small And Medium Enterprises
(MSME's), Corporates, etc. from the Bullion Industries,
Metal Industries, Energy Markets and Agricultural sector.

Some major awareness initiatives in FY 2025-26 were
undertaken as follows:

World Investor Week (WIW) was celebrated from October
06, 2025 till October 12, 2025 throughout India under the
aegis of SEBI & IOSCO.

Total over 115 awareness programs were conducted across
India during WIW, which had around 5500 participants.

Awareness programs across commodities were
conducted with several prominent Institutes, State and
National Universities, Trade Associations and Value Chain
Participants by utilizing the ISF.

Awareness through Media channels:

During FY 2025-26, MCX Investor Protection Fund
(IPF) continued to strengthen investor education and
awareness through a comprehensive, multi-platform
outreach programme focused on fraud prevention,
safe payment practices, market risk awareness, and
responsible market participation. The initiative leveraged
television, digital and social media, radio, print, and on¬
ground engagement formats to disseminate investor
protection messages across diverse geographies and
demographic segments, ensuring broad-based awareness
and accessibility.

A key strength of the programme has been the
development a robust content ecosystem comprising
investor awareness videos, reels, animations, human-
interest advertisements, interactive engagement formats,
Vox-Pop campaigns, and the widely recognized "Monk
& Dude" investor education series. These initiatives have
enabled MCX IPF to communicate complex financial
and market-related concepts in a simple, relatable, and
engaging formats.

The awareness campaigns addressed several investor
protection themes, including financial scams, cyber
frauds, digital arrest schemes, intermediary verification,
safe UPI payment practices, and responsible investing

behavior. To enhance inclusivity, content has been made
available in multiple regional languages, including
sign-language-supported formats, thereby expanding
accessibility across different investor communities. In
addition, MCX IPF continued to incorporate commodity
market-related education by creating awareness around
price risk management, market linkages, and the role of
regulated commodity derivatives markets. The annual
"A Monk Who Trades" fiipbook series, which has now
completed six editions over six years, remains a flagship
knowledge resource that supports long-term investor
engagement and financial literacy efforts.

Other Initiatives:

MCX IPF successfully organized the 8^th edition of 'MCX-
IPF COMQUEST' - 2025-26, its premier, National-level
Commodity Market Educational Quiz for students. This
year, around 12500 individual students, from over 940
institutes across India participated in the competition,
making it the largest number amongst all previously held
editions."

22. TRAINING AND EDUCATION

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 undertook
the following -

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

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

iii)    Conducted Case Study competitions in partnership
with reputed B-Schools

iv)    Carried out multiple engagement programmes
towards imparting education and awareness among
academia, students covering around 200 B-Schools,
Colleges, academic bodies, etc;

v)    Conducted the VIIIth edition of MCX-IPF COMQUEST
All India commodity quiz programme. As part of this
initiative to deepen it further, we have carried out
zonal (4) quiz programmes

vi)    Conducted around 2000 awareness programmes for
FPO's, MSME's, academic institutions and general
investors as part of yearly SEBI mandated awareness

drives on financial markets leveraging on SEBI
SMART certified trainers.

23.    WAREHOUSING

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 March 31, 2026, MCXCCL has entered into
agreements with four Warehouse Service Provider
(WSPs) for facilitating physical deliveries in agricultural
commodities and base metals. As on March 31, 2026,
MCXCCL is operating from 24 accredited warehouses of
which 10 warehouses are registered with Warehousing
Development and Regulatory Authority (WDRA). The
remaining 14 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 10 accredited vaults of these agencies
located across various delivery centres.

24.    SUBSIDIARY

Multi Commodity Exchange Clearing Corporation
Limited (MCXCCL)

MCXCCL, a wholly-owned subsidiary of your Company,
is 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 vide its letter dated July 16, 2025, has granted renewal
of recognition to MCXCCL, to act as a Clearing Corporation
for a period of further three years commencing on July 31,
2025 and ending on July 30, 2028, 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 the 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 March 31,2026, Authorized Share Capital of MCXCCL
stood at '30,000 lakhs and issued and paid-up share
capital stood at '23,999 lakhs. The net worth as at March
31, 2026 was '98,409.31 lakhs. However, it may be noted
that SEBI approved the amendments to MOA and AOA of
MCXCCL in May 2026, pursuant to which Authorized Share
Capital of the Company is increased to '400 crores.

Core Settlement Guarantee Fund (Core SGF)

SEBI vide circular no. SEBI/HO/CDMRD/DRMP/
CIR/2018/111 dated July 11, 2018, and circular no. SEBI/
HO/47/16/14(1 )2026-MRD-POD1/I/7115/2026 dated
March 16, 2026 issued norms related to computation
of SGF requirement and standardized stress testing
for credit risk in commodity derivatives. The total Core
SGF as on March 31, 2026 stood at '1,367.29 crores, of
which '285.58 crores has been contributed by MCX,
'760.40 crores has been contributed by MCXCCL and
'321.31 crores has accrued from penalties, interest and
other accruals.

MCX Coal Exchange of India Limited

During the year under review, SEBI has vide letter
dated April 17, 2026, inter alia, granted approval under
Regulation 38(2) of SECC Regulations for investment
in the Coal Exchange. Accordingly, the Company has
incorporated a wholly owned subsidiary company in the
name of MCX Coal Exchange of India Limited, on June 11,
2026. Initially, your Company shall hold 100% stake and
may subsequently seek other partners to hold shares in the
Subsidiary Company. Subsequently, a license application
will be submitted to Coal Controller Organization of India.

MCX as the largest Commodity Exchange in the
country proposes to further deepen commodity market
infrastructure, by developing a regulated, technology
driven market for buying and selling coal. This will
be highly beneficial to the ecosystem, as it will be a
transparent, standardized digital platform for physical
delivery of coal at market-driven fair and robust prices.
Through this initiative MCX will leverage its leadership
in commodity exchange's governance, surveillance and
clearing & settlement mechanisms to develop and support
a transparent and technology driven coal ecosystem, as
envisioned by the Government of India.

25.    ASSOCIATES

(i)    Countrywide Commodity Repository Limited

(ii)    India International Bullion Holding IFSC Ltd.

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 and associate companies.

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/sha reholder-
information.

26.    MANAGEMENT DISCUSSION AND ANALYSIS
STATEMENT

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

27.    COMMITMENT TO QUALITY

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 services 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.

Your Company was successful in upholding its
commitment towards compliance with and adherence
to international best practices. Your Company has been
continuously raising the bar through effective research
and product development, intelligent use of information
and technology, innovation, thought leadership and
ethical business conduct. MCX has been certified with
ISO standards i.e., Quality Management System (ISO
9001:2015), Environment Management System (ISO
14001:2015), Business Continuity Management System
(ISO 22301:2019) and Information Security Management
System (ISO/IEC 27001:2022). 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.

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

28. RESEARCH AND DEVELOPMENT

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, on April
01, 2025, MCX launched the Gold Ten (10-gram) futures
contract to improve market accessibility for retail investors
and smaller participants. Further, after having undertaken
extensive market research, the exchange made history on
July 10, 2025, by becoming the first in India to introduce
electricity derivatives via the MCX Electricity (Monthly Base
Load) Futures. The Exchange also continued its research
into existing products and refining them as per market
demand and evolving landscapes. The MCX Nickel futures
and MCX Cotton futures contracts were modified during
the year to better mirror physical market dynamics. Building
on this momentum, the Exchange introduced the Silver 100
futures contracts (100-gram lot size) on June 1,2026.

In accordance with SEBI guidelines on utilisation of
interest income on Investor Protection Fund (IPF) for
research activities, your Company initiated two research
studies during the year FY 2025-26 on themes connected
to commodity derivatives market. The studies are
'Unlocking Institutional Participation in Indian Commodity

Derivatives Market: A Framework for Deeper Market
Integration' being undertaken by team from IIM Raipur
and ‘India's Commodity Crystal Ball: What Will be Valuable,
Scarce & Strategic in 2047?' being undertaken by team from
TranGraph Consultancy Pvt. Ltd. Further, two research
studies initiated in FY 2024-25, were completed during
FY 2025-26. There were: 'Commodity Options Strategies
for Easing Participation of Hedgers and Small Stakeholders'
undertaken by Birla Institute of Management Technology
(BIMTECH) and 'State of Warehouse Receipt-Based Financing
in India and Path Forward', undertaken by TransGraph
Consulting Pvt. Ltd.

Reports of completed 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 raise awareness and promote research in commodity
markets and their ecosystem, your Company publishes an
annual publication titled 'Commodity Insights Yearbook'.
The 2025 edition of the Yearbook was a collaborative effort
between MCX IPF and the Indian Institute of Management
Bangalore. The Yearbook is a compilation of research
articles and valuable data on commodity markets and
the 2025 edition specifically focused on articles centered
around the theme of 'Commodity Derivatives: Intrinsic to a
nation's development' The publication, along with relevant
data in user-friendly spreadsheets, is available for free
download on the Exchange's website to ensure maximum
accessibility. Copies of the Yearbook were also widely
distributed among academicians, libraries, and other
stakeholders.

Two thematic reports were also released and disseminated
during the year, at events organized by the Exchange to
deliberate on issues pertinent to specific themes. A report
titled ‘Base Metals Derivatives Serving a '20 Trillion Market'
was released on September 17, 2025 by Chairman, SEBI
at the event organized to explore ways to develop the
Base Metals derivatives market, while another report
titled "Investing in Commodities: A '5 trillion Opportunity

for Financial Institutions" was released at an event on
December 17, 2025 organized to discuss ways to enhance
participation of financial institutions in India's commodity
derivatives market.

Apart from the 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 year FY 2025-26, your Company also engaged
with a number of educational institutions and participated
in research conferences conducted by institutions and
associations such as India Finance Conference (annual
pan-IIMs research conference), International Conference
on Financial Markets and Corporate Finance (annual pan-
IITs conference), Gold Policy Centre at IIM Ahmedabad, The
Indian Econometric Society (TIES), apart from conducting
and participating in training and awareness sessions at a
number of educational institutions across the country.

As part of the Exchange's initiatives at creating and
spreading knowledge for orderly functioning and
development of the securities market, your Company has
been providing calculated values for some commodities
on a daily basis to an Asset Management Company (AMC),
which forms part of a benchmark index created and
tracked by the AMC.

29. ENVIRONMENTAL RESPONSIBILITY

Your Company believes in climate friendly business
practices and focussed sustainability initiatives. Your
Company has adopted an Environmental Policy. It utilizes
the resources in an effective manner and focuses on
energy efficient equipment with longer durable life to
drive its business.

Your Company is highly dependent on Information
Technology. To maintain its productivity and sustainable
performance it carries out regular maintenance along
with software and storage upgrades. The IT infra is built
on scalable model where the services can be expanded
without replacing the infra through higher upgrade.

Your Company encourages online meeting as much as
possible and limit physical travel as it is aware of carbon
footprints left behind through Business travels.

Your Company manages its waste through environmental
best practise on the principle of reuse, reduce and recover.
Your Company has E-Waste policy for disposal of E-waste
through recyclers to avoid any e-waste going to the land
fill.

Your Company has adopted resource conservation
through efficient use of water by introducing tap aerators
and rainwater harvesting.

Your Company has implemented password enabled
printers to reduce paper waste.

Your Company control its emission by implementing Retro
Emission Control Device (RECD) on Diesel generators
to trap particulate matter (PM) from escaping in the
environment promoting environmental healthy practices.

Your Company checks its environmental impact through
Stack Emission, Noise Pollution & Air quality checks.

30.    CORPORATE SOCIAL RESPONSIBILITY (CSR)

The Company has constituted a Committee in accordance
with Section 135 of the Act. The Annual Report on
CSR activities as per the Companies (Corporate Social
Responsibility Policy) Rules, 2014 has been annexed to
this Report as Annexure II. The CSR policy is available on
the website of the Company athttps://www.mcxindia.
com/about-us

31.    BUSINESS    RESPONSIBILITY    ANDSUSTAINABILITY REPORT (BRSR)

The Business Responsibility and Sustainability Report
(BRSR) of the Company for the Financial Year 2025-26,
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.

32.    ETHICS AND GOVERNANCE POLICIES

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.

A.    POLICY ON NOMINATION AND REMUNERATION
PARTICULARS OF REMUNERATION

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-
governance

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.

B.    WHISTLE BLOWER POLICY / VIGIL MECHANISM

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 behavior. 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, Regulation 22 of the SEBI (LODR)
Regulations, 2015 and SEBI circular ref. No. SEBI/HO/
MRD/POD3/P/CIR/2024/162 dated November 22,
2024, 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.mcxindia.com/investor-
relations/corporate-governance For further details,
please refer to the report on Corporate Governance
forming part of this Annual Report.

C.    POLICY ON MATERIAL SUBSIDIARIES

As required under Regulation 16(1)(c) of SEBI (LODR)
Regulations, 2015, the Company has formulated
and adopted a policy for determining Material
Subsidiaries.

For FY 2025-26, Multi Commodity Exchange Clearing
Corporation Limited ("MCXCCL") is the material
subsidiary of the Company. As per Regulation 24A of
SEBI (LODR) Regulations, 2015, the Secretarial Audit
Report of MCXCCL is a part of Annexure V of this
report.

The policy on Material Subsidiary is available on the
website of the Company athttps://www.mcxindia.
com/investor-relations/corporate-governance

D.    INSIDER TRADING REGULATIONS

Pursuant to the provisions of SEBI (Prohibition of
Insider Trading) Regulations, 2015, the Company
has formulated a Code of Conduct for Prevention
of Insider Trading ("Insider Trading Code") and Code
of Practices and Procedures for fair disclosure of
Unpublished Price Sensitive Information ("UPSI"). The
Code of Practices and Procedures for fair disclosure
of UPSI is available on the website of the Company
at https://www.mcxindia.com/investor-relations/
corporate-governance

E.    CONTRACTS AND ARRANGEMENTS WITH
RELATED PARTIES

All related party transactions entered into by your
Company during the period under review were in
the ordinary course of business and at arm's length
pricing basis. Also, prior omnibus approval was
obtained for related party transactions which were of
repetitive nature and entered in the ordinary course
of business and are at arm's length. The related
party transactions entered into by your Company
during the year under review, were approved by
the Audit Committee and noted by the Board, as
applicable, in accordance with the provisions of
the Companies Act, 2013, SEBI (LODR) Regulations,
2015 and other applicable guidelines/directions
from the Regulator. Further, transactions entered
into between a holding Company and its wholly
owned subsidiary whose accounts are consolidated
with such holding Company are exempted from the
provisions related to omnibus approval, under the

applicable provisions of the Companies Act, 2013
and the SEBI (LODR) Regulations, 2015. However, the
Company, as a good corporate governance practice,
does seek omnibus approval for transactions to be
entered into with MCXCCL, wholly owned subsidiary
of the Company and Associate Companies.

Pursuant to Section 134(3)(h) read with Rule 8(2)
of the Companies (Accounts) Rules, 2014, the
particulars of material contracts or arrangements
with related parties referred to in Section 188 (1)
of the Companies Act, 2013, in Form AOC-2, is
available on the website of the Company at https://
www.mcxindia.com/investor-relations/shareholder-
information

Your Company has formulated a policy on materiality
of related party transactions and dealing with
related party transactions as amended from time
to time. The Policy is uploaded on the website of
your Company and may be accessed at the weblink:
https://www.mcxindia.com/investor-relations/
corporate-governance

All Related Party Transactions as required under Ind
AS 24 - Related Party Disclosures, are reported in
Note 37 and Note 38 of Notes to Accounts of the
standalone and consolidated financial statements,
respectively of your Company.

F.    DIVIDEND DISTRIBUTION POLICY

Pursuant to Regulation 43A of the SEBI (Listing
Obligations and Disclosure Requirements)
Regulations, 2015, your Company had formulated
a Dividend Distribution Policy which is available on
the Company's website athttps://www.mcxindia.
com/investor-relations/corporate-governance.

G.    BOARD COMMITTEES

There are various Board constituted Committees as
stipulated under the Act and SEBI (LODR) Regulations,
2015 namely Audit Committee, Nomination and
Remuneration Committee, Stakeholders Relationship
Committee, Risk Management Committee and
Corporate Social Responsibility Committee. Brief
details pertaining to composition, terms of reference,
meetings held and attendance thereat of these
Committees during the year have been enumerated
in Corporate Governance Report forming part of this
Annual Report which are detailed in the CG Report.

Additionally, Company being an Exchange, has
also constituted other Regulatory Committees as
stipulated under SECC Regulations, 2018.

AUDIT COMMITTEE

A detailed note on the composition, terms of reference
etc., of Audit Committee is covered under the Corporate
Governance Report. During the year under review, all the
recommendations made by the Audit Committee were
accepted by the Board.

33.    STATUTORY AUDITORS AND THEIR REPORT

The Report given by the Auditor on Financial Statements
of the Company forms part of the Annual Report. They
issued the Report with an unmodified opinion. There is
no qualification, reservation or adverse remark made by
the Auditor in their report. During the year, the Auditors
have not reported any fraud to the Audit Committee or
the Board.

34.    SECRETARIAL AUDITORS AND THEIR REPORT

The Board of Directors at their meeting held on May 08,
2025, based on the recommendations of Audit Committee,
approved the appointment of M/s AVS & Associates,
Practicing Company Secretaries, (FRN: P2016MH54900)
as Secretarial Auditors of the Company for a term of 5
years from FY 2025-26 till FY 2029-30 subject to approval
of shareholders at the ensuing Annual General Meeting.
The shareholders at the 23^rd Annual General Meeting held
on September 12, 2025, approved their appointment for a
term of 5 years from FY 2025-26 till FY 2029-30.

Further, M/s Mayekar & Associates, Practicing Company
Secretaries, were appointed as the Secretarial Auditors by
the Board of MCXCCL to conduct their secretarial audit for
FY 2025-26.

I n accordance with Section 204(1) of the Companies Act,
2013 and Regulation 24A of SEBI (LODR) Regulations, 2015
the Secretarial Audit Reports of the Company and MCXCCL
for the Financial Year ended March 31, 2026 are annexed
as Annexure V to this Report. The Secretarial Audit Report
does not contain any qualifications, reservations, or
adverse remarks.

35.    INTERNAL AUDITOR

Internal Audit for the year ended March 31, 2026,
was conducted by M/s Mittal & Associates, Chartered
Accountants. Internal Audit report at periodic intervals
were placed before the Audit Committee and the Board.

36.    COST RECORDS AND COST AUDIT

Maintenance of cost records and requirement of Cost
Audit as prescribed under the provisions of Section 148(1)
of the Act, are not applicable for the business activities
carried out by the Company.

37.    COMPLIANCE WITH SECRETARIAL STANDARDS

The Company has devised proper systems to ensure
compliance with the provisions of all applicable Secretarial
Standards ("SS") issued by the Institute of Company
Secretaries of India and that such systems are adequate
and operating effectively. During the year under review,
the Company has complied with the Secretarial Standards

i.e. SS-1 and SS-2 relating to "Meetings of the Board of
Directors" and "General Meetings", respectively.

38.    ANNUAL RETURN

Pursuant to Section 92(3) of the Companies Act, 2013, the
Annual Return in form MGT-7 for FY 2025-26 is available at
the web link https://www.mcxindia.com/investor-relations

39.    INTERNAL FINANCIAL CONTROLS AND THEIR
ADEQUACY

Your Company has maintained adequate internal financial
controls over financial reporting, which are constantly
assessed and strengthened with new/revised standard
operating procedures. The Board has adopted policies and
procedures for ensuring the orderly and efficient conduct
of its business, including adherence to the Company's
policies, safeguarding of its assets, prevention and
detection of fraud, error reporting mechanisms, accuracy
and completeness of the accounting records and timely
preparation of reliable financial disclosures.

The Company's internal control system is commensurate
with its size, scale and complexities of its operations.
The Audit Committee of the Board actively reviews
the adequacy and effectiveness of the internal control
systems and suggests improvements to strengthen the
same. The Audit Committee of the Board and Statutory
Auditors are periodically apprised of the internal audit
findings and corrective actions taken. Audit plays a key
role in providing assurance to the Board of Directors on
the effectiveness of internal controls and the veracity of
the financial statements. Such internal financial controls
over financial reporting were operating effectively as of
March 31,2026.

40.    DETAILS IN RESPECT OF FRAUDS REPORTED
BY AUDITORS UNDER SUB-SECTION (12) OF
SECTION 143 OTHER THAN THOSE WHICH ARE
REPORTABLE TO THE CENTRAL GOVERNMENT

No fraud has been reported by the Auditors to the Audit
Committee or the Board.

41.    LEGAL UPDATE

Crude Oil Matters:

Crude Oil contracts were launched by MCX on October
22, 2019, which expired on April 20, 2020. As per contract
specifications, the Crude oil contracts are always settled
as per the NYMEX WTI Crude oil contract settlement price
converted into Indian rupees on the last trading day. On
April 20, 2020, the NYMEX Crude oil contracts fell into
negative territory i.e. -37$. Accordingly, the MCX/ CCL
Circular dated April 21,2020 fixed the due date rate of the
futures contract expiring on April 20, 2020 minus 2,884 '
per barrel. This resulted in multiple Writ Petitions being
filed against MCX and MCXCCL in various High Courts
wherein it was inter-alia prayed to quash and set aside the
Impugned Circular dated April 21,2020.

All the writ petitions filed before various High Courts were
transferred to Hon'ble Bombay High Court and clubbed.
The matter has been argued at length with hearings
taking place every week from January 2026. The Bombay
High Court vide its Order pronounced on June 24, 2026,
held the validity of the MCX/MCX-CCL Circular dated April
21, 2020, rejected all challenges to the negative DDR
settlement mechanism, and held that the petitioners were
bound by the contractual settlement framework thereby
dismissing all the Writ Petitions. Dhanera Diamonds has
filed appeal in the form of Special Leave Petition in the
Supreme Court which will be listed in due course.

42.    HUMAN RESOURCE DEVELOPMENT

Human Resources plays an instrumental role in securing
the future success of the organization. In doing so, HR by
its long-term vision of working in partnership to create an
environment where employees can thrive and are enabled
to deliver sustainable organizational performance.

As on March 31, 2026, the Exchange had 478 employees
(includes employees and trainees/management trainees).

HR principles & priorities have ensured that exchange
seeks to retain, develop and continue to attract people
with the requisite skills to help shape a better organization
and foster employees engagement and motivation
throughout the implementation process.

During the year, the Company undertook several
employee engagement and welfare initiatives, including
employee welfare programmes, festive celebrations,
sports and recreational activities, and other employee¬
centric events designed to promote collaboration, well¬
being, and a sense of belonging across the organization.

MCX made significant investments in building a future-
ready workforce through a structured Learning &

Development strategy aligned to business priorities,
leadership capability, digital transformation, customer
excellence, and regulatory compliance.

The Company conducted its annual Employee Satisfaction
Survey to assess employee sentiment, identify areas for
improvement, and strengthen organizational effectiveness.
The insights gathered through the survey continue
to support the Company's efforts towards enhancing
employee engagement and workplace practices.

The Exchange also organized its Annual Employee Event,
providing a platform for employees across locations to
come together, celebrate achievements, and reinforce the
Company's values and culture.

Quarterly Townhall Meetings were conducted to facilitate
transparent communication between leadership and
employees, enabling the sharing of business updates,
strategic priorities, and organizational developments.

43.    DISCLOSURES PERTAINING TO THE SEXUAL
HARASSMENT OF WOMEN AT THE WORKPLACE
(PREVENTION, PROHIBITION AND REDRESSAL)
ACT, 2013

Your Company continues to have in place an Anti-Sexual
Harassment Policy and has complied with the provisions
relating to the constitution of Internal Complaints
Committee under "The Sexual Harassment of Women at
the Workplace (Prevention, Prohibition & Redressal) Act,
2013". The Company had conducted workshops on POSH
for the employees on periodic basis.

No complaint was received during the FY 2025- 26 in
relation thereto. Details are provided below:

(a)    number of complaints of sexual harassment received
in the year: 0 complaints

(b)    number of complaints disposed off during the year;
and - NA

(c)    number of cases pending for more than ninety days.-
NA

The Company has complied to the provisions relating to
the Maternity Benefits Act 1961 in FY 25-26.

44.    EMPLOYEE STOCK OPTION SCHEME

The stock options granted to the employees of the
Company, operated under the "Employee Stock Option
Scheme 2008 (ESOP 2008)" of the Company, formulated
in accordance with the SEBI (Employee Stock Option
Scheme and Employee Stock Purchase Scheme)
Guidelines 1999, which was approved by the shareholders
at the Extraordinary General Meeting held on February
27, 2008. MCX ESOP Trust constituted by the Company

is responsible for administration and implementation of
the scheme under the directions of the Nomination and
Remuneration Committee. There has been no change in
the Scheme during the year ended March 31,2026.

There were no grants pending for vesting as at March 31,
2026. No new grants were made during FY 2025-26.

The relevant disclosures required under the SEBI
Regulations for the year ended March 31, 2026 are
available on the website of the Company athttps://www.
mcxindia.com/investor-relations/corporate-governance

45. CONSERVATION OF ENERGY, TECHNOLOGY
ABSORPTION AND FOREIGN EXCHANGE
EARNINGS/OUTGO

The disclosures to be made under Section 134 (3) (m)
of the Companies Act, 2013 read with Rule 8 (3) of the
Companies (Accounts) Rules, 2014, are explained as under:

A) CONSERVATION OF ENERGY

Your Company is committed to conducting its
business through efficient energy utilisation. It
has implemented various measures to optimise
energy consumption by adopting energy efficient
equipment, thereby supporting sustainable growth.
Your Company explores new technologies and
innovative techniques to enhance the energy
efficiency of its infrastructure

i. Steps taken or impact on Conservation of
Energy:

Your Company has installed Precision Air
Cooling System for the rack servers in the
Data Centre. This system is highly energy-
efficient, featuring Variable Frequency Drives
(VFD) coupled with linear scroll compressors
that adjust power consumption according
to demand. The system provides targeted
cooling to the equipment only, rather than the
surrounding environment, thereby preventing
unnecessary operation of compressors and
minimizing energy wastage while maintaining
optimal server rack temperatures

Your Company has implemented a 7^th
Generation Variable Refrigerant Volume
(VRV) air-conditioning system for the entire
building. This inverter-based system reduces
compressor rotations during periods of lower
occupancy, resulting in significantly lower
energy consumption. Additionally, the use of
environment-friendly R410A refrigerant further
supports sustainability goals.

Your Company has UV-resistant film has
been applied to the facade glass windows to
minimize heat ingress into the building. This
reduces the overall air-conditioning load and
lowers electricity consumption. The treated
glass also helps decrease the need for artificial
lighting during daytime hours.

Your Company has installed motion sensors in
low-traffic areas to regulate lighting and reduce
energy consumption.

Your Company's business processes have been
automated, improving productivity while also
saving energy by reducing the time computers
need to run.

Your Company primarily uses laptops for IT
functions, along with SSD drives, which support
faster processing and lower power usage.

Your Company maintains adequate capacitor
bank for non-linear electrical loads such as
air-conditioning plants, pumps, and motors,
helping reduce unnecessary energy draw and
improve the power factor.

Your Company uses energy-efficient electrical
equipment, including modern devices and IP-
based cameras.

Your Company has adopted ASHRAE
guidelines for air conditioning and maintains
the temperature at 24 degrees Celsius in work
areas.

Your Company has strict power-monitoring
schedule is followed for air conditioners and
lighting to avoid electricity wastage.

Additionally, energy audits, heat load
calculations, and power factor correction are
carried out regularly. Password-protected
printers have also been installed, which only
print when a password is entered, thereby
reducing unnecessary paper use and energy
consumption.

ii.    Steps taken by your Company for utilizing
alternate sources of energy:

Your Company has not utilised any alternate
source of energy during the year under review.

iii.    Capital investment on energy conservation
equipment:

Your Company replaced old building lights with
energy-efficient LED lights as part of its energy¬
saving measures. Total investment: '3.08 lakhs.

Your Company has replaced old desktops
and CPUs with laptops, and old servers with
new energy-efficient servers using SSD drives,
improving processing speed while reducing
energy consumption. Total investment: '26.03
crores.

B) TECHNOLOGY ABSORPTION

Cyber Security framework

Special emphasis was laid by your Company on
continuous improvement in its cyber security
framework and information security management
systems. The organization has implemented robust
and comprehensive cyber security aligned with
industry best practices, regulatory requirements,
and internationally recognized standards like ISO
27001:2022 standard. The framework is designed to
protect its critical information assets, applications,
databases, networks, and digital service from
evolving cyber threats and ensure the Confidentiality,
Integrity and Availability of Information assets while
supporting secure business operation, regulatory
compliance, and effective cyber risk management.

MCX has multi layered security architecture that
combines preventive, detective, corrective and
proactive security controls across People, Process,
and Technology domains. Key security capabilities
include safeguarding sensitive information,
continuous threat monitoring and timely incident
response. Security assurance is further strengthened
through periodic Vulnerability Assessment and
Penetration testing (VAPT).

Through continuous monitoring, regulatory
compliance, security assessment, governance
oversight, and proactive threat management, the
organization has established a resilient cybersecurity
ecosystem that enhances operational resilience,
support audit readiness, mitigates emerging cyber
threat and drives continuous improvement of the
organization overall security posture. Your Company
has also implemented 24x7x365 Cyber Security
Operation Centre (C-SOC) for monitoring and raising
alerts related to cyber-attacks and other security
related incidents round the clock.

Highest priority and continuous support were given
by the senior management to all matters of Cyber
Security and Risk Management.

MCX understands that humans are the weakest link
in cyber-attacks and in view of the same, continuous
awareness sessions are conducted to enhance
preparedness among employees against cyber-

attacks. The awareness initiative is also extended to
the Market participants through Member awareness
sessions & advisories.

The Company has also been classified as a CII (Critical
Information Infrastructure) through notification
from the Ministry of Finance (MoF) & National
Critical Information Infrastructure Protection Center
(NCIIPC). Your Company has taken measures to meet
the expectations of the agency by adopting the
guidelines and frameworks issued by NCIIPC from
time to time.

Switchover/switchback between Primary & DR
site while conducting un-announced Live trading
from DR site

Your Company ensured smooth running of an
un-announced Live Trading Operations from
Disaster Recovery Site for two consecutive days, in
compliance with regulatory norms.

Your Company ensured that staff members working
at DRS run the live trading session independent of
the PDC staff.

Your Company has strengthened the Business
Continuity Plan (BCP) and Disaster Recovery (DR)
Policy and framework considering the latest SEBI
Guidelines for BCP-DR of MIIs, with an objective to
put in place measures to restore operations of critical
systems within stipulated Recovery Time Objective
(RTO), streamlining communication protocols,
identifying broad scenarios of disaster, escalation
hierarchy among others.

Upgrading Information Technology Systems

Your Company has continued to allocate substantial
resources towards upgrading information
technology systems. Our overarching goal remains
achieving higher capacity, lower latency, improved
market efficiency and transparency, enhanced
user experience, and providing flexibility for future
business growth and market needs.

Strong Technology Framework

MCX's technology infrastructure is the foundation of
our business and a key contributor to the Exchange's
functioning and development. MCX state-of-the-
art technology infrastructure forms the backbone
of your exchange operations, driving growth and
ensuring market continuity. Our core trading
platform and mission-critical applications are hosted
at our Mumbai headquarters. To ensure Business
continuity, we maintain a fully functional BCP
site in GIFT City, built to achieve seamless failover

MCX's Continuous efforts on upgradation/
enhancement of the Information Technology
and related Infrastructure and constantly
monitoring the performance. With the growth
in Business MCX has ramped up its technology
investments to cater to evolving needs. This
reflects MCX commitment in building long¬
term sophisticated system to ensure credibility
and reliability of its system.

Post migration to the new Technology platform
on October 16, 2023, the Exchange has seen
significant growth in trading volumes in
subsequent years and the new Technology
Platform has scaled up to handle these volumes
seamlessly. We have also enhanced the in¬
house team capabilities to handle the quality
assurance, operations and support of the new
Technology platform.

Our business environment is marked
by constant and rapid technological
advancements. To maintain our competitive
edge, your Company continues to work on
upgrades, enhancements and improve the
performance, capacity, scalability, accessibility
and features of our trading and clearing,
systems and technologies.

(ii)    Details of imported technology (imported
during the last three years reckoned from
the beginning of the financial year):

Your Company has not directly imported any
technology during the last three financial years.

(iii)    Expenditure incurred on Research and
Development (during the year under review)

- Not applicable

C)    FOREIGN EXCHANGE EARNINGS / OUTGO DURING

THE YEAR UNDER REVIEW

The details of foreign exchange earnings and outgo
during the year under review forms part of the
Significant Accounting Policies and Note no. 34 &
no. 35 of Notes to Accounts of the standalone and
consolidated financial statements, respectively.

46. CORPORATE GOVERNANCE

Your Company is committed to good corporate
governance aligned with the best corporate practices.
The report on Corporate Governance, as stipulated under
Regulation 34(3) read with Schedule V of the SEBI (LODR)
Regulations, 2015 and the certificate from a Practicing
Company Secretary, regarding compliance of conditions

of corporate governance, forms part of this Annual
Report. The report on Corporate Governance also contains
disclosures as required under the Companies Act, 2013.

47. RESOURCES COMMITTED TOWARDS
STRENGTHENING REGULATORY FUNCTIONS
AND TOWARDS ENSURING COMPLIANCE WITH
APPLICABLE REGULATORY REQUIREMENTS

The Company being a recognized Stock Exchange is
governed by SEBI. The Company ensures compliances
with various regulations and guidelines issued by SEBI
from time to time and strives to implement the best
governance practices.

The disclosure pertaining to resources committed
towards strengthening regulatory functions and ensuring
compliance with regulatory requirements, backed by an
activity-based accounting, in terms of Regulation 33 of the
SECC Regulations, 2018, is as under.

During the year under review, the Company's regulatory
division comprised of departments, handling various
aspects of regulatory compliances, as under:

1.    SEBI Compliance

2.    Inspection & Enforcement

3.    Investor Protection Fund

4.    Investor Services Department (Arbitration, Grievance
Redressal Mechanism and Member Default)

5.    Membership

6.    Surveillance & Investigation

7.    Secretarial & Compliance

8.    Enterprise Risk Management

As on March 31, 2026, the Company had 124 employees
in the overall regulatory function. The Company has
dedicated resources to manage the various regulatory
functions.

The Company has ensured to make disclosures of various
mandatory regulatory requirements along with reporting
of the same to various regulatory authorities in addition
to informing the same to the Board of Directors and
respective Committee.

For the FY ended on March 31,2026, the total cost (Fixed
pay) incurred by the Exchange towards these functions was
'21.81 crores MCX incurred direct and indirect expenses
including technology expenses amounting '65.04 crores

as per activity-based accounting methodology towards
strengthening regulatory functions and towards ensuring
compliance with regulatory requirements.

48.    DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to the requirement of Section 134 of the
Companies Act, 2013, your Directors confirm that:

a)    in the preparation of the annual accounts for the
financial year ended March 31, 2026, the applicable
accounting standards had been followed along with
proper explanation relating to material departures
from the same;

b)    they have selected such accounting policies and
applied them consistently and made judgements
and estimates that are reasonable and prudent so as
to give a true and fair view of the state of affairs of
the Company as at March 31,2026 and of the profit
of the Company for the year ended March 31,2026;

c)    t hey have taken proper and sufficient care for the
maintenance of adequate accounting records
in accordance with the provisions of the Act for
safeguarding the assets of the Company and
for preventing and detecting fraud and other
irregularities;

d)    they have prepared the annual accounts on a 'going
concern' basis;

e)    they have laid down internal financial controls to
be followed by the Company and that such internal
financial controls are adequate and were operating
effectively; and

f)    they have devised proper systems to ensure
compliance with the provisions of all applicable laws
and that such systems are adequate and operating
effectively.

49.    THE DETAILS OF APPLICATION MADE OR
ANY PROCEEDING PENDING UNDER THE
INSOLVENCY AND BANKRUPTCY CODE, 2016
DURING THE YEAR ALONG WITH THEIR STATUS
AS AT THE END OF THE FINANCIAL YEAR.

In a matter dated October 2018, pertaining to a defaulting
member, Exchange had filed an application under section
9 of the IBC, 2016 for initiation of CIRP for the recovery
of the dues towards the Investor Protection Fund and
Exchange dues. The matter is being heard Ex-parte and
has been adjourned to September 09, 2026 for hearing.

50. THE DETAILS OF DIFFERENCE BETWEEN
AMOUNT OF THE VALUATION DONE AT THE
TIME OF ONETIME SETTLEMENT AND THE
VALUATION DONE WHILE TAKING LOAN FROM
THE BANKS OR FINANCIAL INSTITUTIONS
ALONG WITH THE REASONS THEREOF.

The requirement to disclose the details of difference
between amount of the valuation done at the time of
onetime settlement and the valuation done while taking
loan from the Banks or Financial Institutions along with
the reasons thereof, is not applicable.

51. ACKNOWLEDGMENTS

The Board of Directors wishes to place on record
their sincere gratitude for the valuable guidance and
continued support extended by the Government of India,
Government of Maharashtra, Other State Government,
Ministry of Finance, SEBI, RBI, Stock Exchanges, Ministry
of Corporate Affairs, other government authorities, Banks,
trading members, investors, shareholders, members of
various committees, auditors and other stakeholders.
The Directors would also like to take this opportunity to
express their appreciation for the dedicated efforts of the
employees of the Company.

For and on behalf of the Board of Directors

Praveena Rai    Harsh Kumar Bhanwala

MD & CEO    Chairman & Public Interest Director

(DIN: 09474203)    (DIN: 06417704)

Mumbai    Mumbai

August 04, 2026    August 04, 2026