Mumbai, Aug. 10: India could get its third major equity stock exchange the MCX- SX by September, once the Securities and Exchange Board of India (Sebi) gives its consent to the exchange.
The Bombay High Court on Tuesday passed an order on a petition filed by MCX and FTIL, the promoters of the exchange giving a road map to Sebi to pass its final decision by September 30, on the various segments/ products including equity/ F&O, etc.
The third exchange is expected to liven the stock market scene where the premier exchange — National Stock Exchange — does not have much competition from the Bombay Stock Exchange that is the country’s oldest exchange. It is expected to be a new generation exchange and has already given tough competition to the NSE in the currency derivatives segment. As a new exchange, its competitive edge will be cost, technology and the products it will offer.
MCX-SX’s application for permission to start equity trading has been pending with Sebi for over a year. The counsel for MCX-SX said that Sebi had given it only one product namely ‘currency derivative segment’, despite having recognised it as a full stock exchange. Thereafter, MCX-SX applied for all products through several letters/ reminders which were simply not responded to by Sebi.
MCX-SX claims to be facing a daily loss of approximately Rs 15 lakhs and has lost Rs 100 crore so far as the infrastructure is lying idle.