India to get third stock exchange; SEBI grants MCX SX permission to set up bourse

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India to get third stock exchange; SEBI grants MCX SX nod
After months of hectic lobbying and a virtual face off with the Securities and Exchange Board of India, the market regulator has finally granted MCX Stock Exchange Ltd (MCX SX) to become a full fledged bourse.

MCX SX can now introduce new asset classes on its platform including equities, derivatives and wholesale debt segments. MCX SX, now becomes the third exchange after the National Stock Exchange after the Bombay Stock Exchange.

The decision follows an April directive from the Supreme Court asking Sebi to reconsider MCX-SX's plea to offer new asset classes on its platform. MCX-SX has until been operating a metals and energy trading exchange. It was first granted recognition by Sebi in September 2008, but it was allowed to conduct trading only in the currency derivatives segment.

"This is indeed a huge development for the Indian Capital Market industry and will create a conducive environment for growth of all asset classes," said Ashok Jha, chairman of MCX-SX, in a statement.

MCX-SX is promoted by the Multi Commodity Exchange of India (MCX) and Financial Technologies India. Since MCX already has a significant experience in offering commodity related trading, it should not take MCX-SX time to introduce equities and derivatives trading marking its entry as the third bourse of the country.

Read more about: mcx, mcx sx
Story first published: Wednesday, July 11, 2012, 9:07 [IST]
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