MCX-SX said it will launch its equity trading platform by 2014 which will be a challenge for the established players including Bombay Stock Exchange and National Stock Exchange, the news reports said.
On Tuesday, MCX secured the approval from market regulator Securities and Exchange Board of India to operate a full-fledged stock exchange.
The shares of FTIL ended with a gain of 3.1% at R776, MCX slipped by 2.5% at R1,129 on BSE on Wednesday.
The approval of BSE is conditional and the promoter companies will have to cut the stakes in the exchange to 5% within 18 months.
While both MCX and FTIL shares surged in the morning trade, both pared gains when the market took notice of the condition. Currently, around Rs 2,000 crore and Rs 10,000 crore worth of shares are traded daily on the NSE and BSE.
At present, MCX-SX only offers a trading platform for the currency futures. Securities and Exchange Board of India has allowed the exchange to deal in equity, wholesale debt and futures.
Joseph Massey, Managing Director, MCX-SX said, “We remain committed to the development of the domestic capital market, catering to the growing needs of investors for suitable investment avenues and to the corporate sector for raising risk and debt capital and for variety of instruments used by the industry for risk mitigation.”
Mr. Massey also said, “Allowing listing for the stock exchanges will spur a transparent policy regime and encourage investments for market development and investor education,” said Jignesh Shah, Vice Chairman MCX-SX.
MCX Stock Exchange is an India-wide electronic platform for trading in currency futures under the regulatory control of Securities and Exchange Board of India and Reserve Bank of India. It is jointly promoted by MCX and Financial Technologies. It started its operations on October 6, 2008 and in July this year; and it secured permission of SEBI to trade in equity business.