[1]MCX-Stock Exchange won approval from Indian regulators to kick-start trading of stock products, as the bourse operator looks to challenge more established rivals the Bombay Stock Exchange and the National Stock Exchange.
MCX-SX, which had so far focused exclusively on currency futures, will now be allowed to trade equity, equity futures, interest rate futures and wholesale debt products, according to a company statement issued late on Tuesday.
The Securities and Exchange Board of India approved the entry of the bourse operator into stock trading on condition that MCX, along with its founder Financial Technologies (India) Ltd, reduce their combined stakes to 5 per cent within 18 months, the statement said.
MCX and Financial Technologies have a combined 10 per cent stake in MCX-SX, the company web site showed.
MCX is expanding its offerings just as SEBI is looking to allow bourse operators to list in India. The stock exchange regulator issued guidelines in April that will govern how bourse operators can pursue initial public offerings.
The approval from SEBI marks a culmination of a long-drawn legal battle by MCX to kick-start stock trading, as the regulator had delayed approval until it implemented regulations governing the ownership of exchanges.
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