India’s financial markets regulator has finally given the green light to the country’s third stock exchange, MCX Stock Exchange (MCX-SX), which hopes to launch with over 400 members.
MCX-SX was granted a commencement certificate from the Securities and Exchange Board of India, the final approval required for launch.
In addition to equities, MCX-SX will offer trading in bonds and interest rates.
The exchange has received over 700 applications from prospective members, 434 of which have been forwarded to SEBI for registration. SEBI has already approved 100 of the 434 members, and the remaining applicants are in the process of completing documentation with MCX-SX.
The exchange conducted a successful mock trading session on 19 November.
“We are grateful to SEBI for allowing us to make our new segments live and giving us the opportunity to work towards development of India’s capital markets,” said Joseph Massey, managing director and CEO, MCX-SX.
Indian equity trading is currently dominated by two bourses – the Bombay Stock Exchange and the National Stock Exchange, which in November accounted for 17.6% and 82.4% market share, according to data from Thomson Reuters.
A fourth market, the Delhi Stock Exchange, has signed a deal to use technology supplied by the London Stock Exchange and is also in the process of securing the necessary regulatory approvals for launch.