Market regulator Sebi today granted permission to MCX-SX to operate as a full-fledged stock exchange, a development that ends nearly four-year-long wait of the bourse and will bring in more competition in markets.
MCX Stock Exchange (MCX-SX) was first granted recognition by Sebi in September 2008, but it was allowed to conduct trading only in the currency derivatives segment. With today's approval, MCX-SX would be able to offer additional asset classes such as equity and equity F&O
(Futures and Options), interest rate futures and wholesale debt segments.
(Futures and Options), interest rate futures and wholesale debt segments.
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Welcoming the decision, MCX-SX vice-chairman Jignesh Shah said: "We are thankful to the regulator and policy makers for effecting calibrated reforms that will foster a pro-competitive environment in India’s exchange industry." "The new regulations have provided the much-needed level
playing field. Allowing listing for stock exchanges will spur a transparent policy regime and encourage investments for market development and investor education," he added.
At present, Sebi has granted permanent recognition to eight stock exchanges in the country, but only two of them -- BSE and NSE (National Stock Exchange) -- are operating as active national level bourses across the segments. MCX-SX and USE (United Stock Exchange) are present in the currency derivatives trade only.
With Sebi's latest decision, MCX-SX is likely to become the third major national-level full-fledged stock exchange. The Securities and Exchange Board of India (Sebi) has been so far renewing MCX-SX's license for one-year periods, but has not been allowing the exchange to operate in segments other than currency derivatives, saying the bourse was not
compliant to the shareholding and other regulations. Its last license was valid up to September 15, 2012.
compliant to the shareholding and other regulations. Its last license was valid up to September 15, 2012.
MCX-SX -Gets SEBI nod to start equity trading platform
-Nod for commencing operations in new asset classes
-Grants permission to deal in Interest rate futures and wholesale debt segments
- MCX & FTIL shareholding in equity share capital of MCX-SX to be brought within 5% limit within 18 months
-MCX & FTIL to reduce their rights over equity arising from warrants within 3 years
-Combined voting rights of FTIL & MCX can’t exceed 5% at any point of time
-Nod for commencing operations in new asset classes
-Grants permission to deal in Interest rate futures and wholesale debt segments
- MCX & FTIL shareholding in equity share capital of MCX-SX to be brought within 5% limit within 18 months
-MCX & FTIL to reduce their rights over equity arising from warrants within 3 years
-Combined voting rights of FTIL & MCX can’t exceed 5% at any point of time
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