MCX-SX to trade in debt and SME platforms
Updated: Jun 01, 2013 02:19:29pm
New Delhi, Jun 1 (KNN) India’s new stock exchange MCX-SX has been given the go-ahead by market regulator Securities and Exchange Board of India (SEBI) to trade in two separate trading platforms – debt and small and medium enterprises (SME).
The latest entrant in capital markets is expected to commence trading in the two segments shortly.
According to a circular, while the approval for trading in the debt segment has received final approval, trading in the SME platform has been approved in principal.
With regard to the debt segment, trading is expected to commence next month. Banks, insurance companies, pension funds, provident funds and retail investors can become members of the bourse and trade in this market. However, there will be separate order books for retail and institutional investors.
The SME segment on the other hand, will only commence once SEBI grants its final approval.
As far as competition is concerned, BSE Ltd and National Stock Exchange (NSE) currently run SME platforms. However, in the debt segment, NSE recently launched a debt segment while BSE is awaiting approval from SEBI.
The SME platform will offer small and medium business units to raise funds from the primary market.
MCX Stock Exchange Limited (MCX-SX) is recognized by Securities and Exchange Board of India under Section 4 of Securities Contracts (Regulation) Act, 1956. The Exchange was notified as a “recognized stock exchange” under Section 2(39) of the Companies Act, 1956 by Ministry of Corporate Affairs, Government of India on December 21, 2012.
In line with global best practices and regulatory requirements, clearing and settlement of trades done on the Exchange is conducted through a separate clearing corporation − MCX-SX Clearing Corporation Ltd. (MCX-SX CCL).
MCX-SX commenced operations in the Currency Derivatives (CD) segment on October 7, 2008 under the regulatory framework of SEBI and Reserve Bank of India (RBI). The Exchange has commenced trading in Capital Market and Futures and Options segments on February 11, 2013 and SX40 Index on May 15, 2013.
The past few days have seen improved volumes on MCX-SX, since it began trading in February. (KNN)
The latest entrant in capital markets is expected to commence trading in the two segments shortly.
According to a circular, while the approval for trading in the debt segment has received final approval, trading in the SME platform has been approved in principal.
With regard to the debt segment, trading is expected to commence next month. Banks, insurance companies, pension funds, provident funds and retail investors can become members of the bourse and trade in this market. However, there will be separate order books for retail and institutional investors.
The SME segment on the other hand, will only commence once SEBI grants its final approval.
As far as competition is concerned, BSE Ltd and National Stock Exchange (NSE) currently run SME platforms. However, in the debt segment, NSE recently launched a debt segment while BSE is awaiting approval from SEBI.
The SME platform will offer small and medium business units to raise funds from the primary market.
MCX Stock Exchange Limited (MCX-SX) is recognized by Securities and Exchange Board of India under Section 4 of Securities Contracts (Regulation) Act, 1956. The Exchange was notified as a “recognized stock exchange” under Section 2(39) of the Companies Act, 1956 by Ministry of Corporate Affairs, Government of India on December 21, 2012.
In line with global best practices and regulatory requirements, clearing and settlement of trades done on the Exchange is conducted through a separate clearing corporation − MCX-SX Clearing Corporation Ltd. (MCX-SX CCL).
MCX-SX commenced operations in the Currency Derivatives (CD) segment on October 7, 2008 under the regulatory framework of SEBI and Reserve Bank of India (RBI). The Exchange has commenced trading in Capital Market and Futures and Options segments on February 11, 2013 and SX40 Index on May 15, 2013.
The past few days have seen improved volumes on MCX-SX, since it began trading in February. (KNN)
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