By Simon Miller
India is to get a third stock exchange after MCX Stock Exchange (MCX-SX) received approval from Securities and Exchange Board of India (Sebi) for commencing operations in equity and equity futures and options and other asset classes.
At present, MCX-SX offers trading in currency futures contract and this development will enable the exchange to offer additional asset classes.
Sebi has granted MCX-SX permission to deal in equity and equity futures & options, interest rate futures and wholesale debt segments with the following main conditions:
1.) In view of MCX-SX submissions and the undertakings of the promoters of MCX-SX, the shareholding of MCX and FTIL in the equity share capital of MCX-SX shall be brought within the 5% limit. The same shall be complied within 18 months from today.
2.) MCX & FTIL shall reduce their entitlement to equity or rights over equity arising from such instruments (Warrants) in excess of the shareholding as specified in the revised SECC regulations within a period of 3 years from the date of notification of the SECC regulations.
3.) The combined voting rights of FTIL and MCX in MCX-SX shall not exceed 5% of the paid up equity share capital of MCX-SX at any point of time.
MCX-SX chairman Ashok Jha commented, “This is indeed a huge development for the Indian Capital Market industry and will create a conducive environment for growth of all asset classes. We will continue with our efforts of systematic development of markets and the financial market ecosystem.”