New India exchange, MCX-SX will begin live trading in derivatives and equities on 11 February.
In December, the new market cleared the last regulatory hurdle to becoming an exchange when India’s Ministry of Corporate Affairs granted it the status of ‘recognised stock exchange’. That same month, MCX-SX received a “commencement certificate” from SEBI for trading in equities, futures and options on equity, interest rate derivatives and the wholesale debt market. MCX-SX will be inaugurated on 9 February by the country’s Finance Minister, Shri Chidambaram.
Around 270 membership applications have already been registered by the country’s financial watchdog, the Securities and Exchange Board of India (SEBI) out of the almost 500 applications submitted by the exchange.
“Inauguration of MCX-SX equity segment will be a significant milestone not only for MCX-SX but the entire nation. Our exchange adds a new dimension to the exchange evolution by embedding growth and inclusion that are so critical for a country like India,” said Jignesh Shah, vice chairman of MCX-SX.
The commencement of the new market is the zenith of a long-fought battle to become India’s third exchange. Last March a decision by the Bombay High Court forced the SEBI to let MCX-SX offer equities trading.
Two exchanges currently compete in equities trading – the Bombay Stock Exchange and the National Stock Exchange – which in December accounted for 17.5% and 82.5% of market share respectively.
“We will continue with our efforts to ensure equitable and inclusive growth of Indian capital markets. In line with the regulator’s vision, our focus will be to increase the depth of markets, introduce new segments and strengthen participation of investors from across the country,” said Joseph Massey CEO, MCX-SX.