India’s new stock exchange MCX-SX begins trading
After the markets closed in India on Monday, the value of shares traded on the MCX-SX was 6.9m rupees as against 94.57bn rupees on the National Stock Exchange (NSE). But investment analysts are expecting the new exchange’s volumes to rise in the near future.
The new stock exchange is part of Mumbai-based Multi Commodity Exchange of India Ltd (MCX) -- the commodity futures exchange.
Its opening comes just two days after Finance Minister P Chidambaram inaugurated the equity and equity derivatives segment with the traditional sounding of the gong and first symbolic trade in Mumbai. The minister also launched the index SX-40 – a free-float based index of 40 large-cap and liquid stocks. The base value of SX-40 is 10,000.
The government’s Ministry of Corporate Affairs (MCA) granted MCX-SX the status of “recognised stock exchange” in December. It also received the “commencement certificate” from the market regulator SEBI for trading in new segments such as Equity, Futures and Options on Equity, Interest Rate Derivatives and Wholesale Debt Market in December.
MCX-SX provides Indian investors with wider choices of investment and risk management products that match with diverse risk profiles and investment appetites, said Joseph Massey, managing director and chief executive MD & CEO of MCX-SX.
MCX began trading in 2003 and holds more than 80% of the commodities futures market and this is the first time it has begun trading in the equity and equity derivatives segment.
