MCX Stock Exchange (MCX-SX), the newly recognized nationwide equity trading platform, is set to kick start trading in around 1000 companies’ shares on Labh Pancham (Laakheni Panchami, Saubhagya Panchami, the final day of Diwali festival which falls this year on November 18.
To take a final call on the commencement of equity trading, however, the company’s board is meeting on November 2.
“We are ready to flag off. But, the board which is scheduled to meet on November 2, has to take a final decision in this regard,” said Jignesh Shah, Vice Chairman of MCX-SX.
Incidentally, Labh Pancham falls this year on the date which proves very lucky for the Financial Technology Group.
Nine years ago in 2003, the Financial Technology promoted Multi Commodity Exchange (MCX) had started operation which recorded a tremendous success with over 86 per cent of market share in commodity derivatives trade.
“We would prefer to start on November 18,” said Shah.
MCX-SX announced on October 22 that the exchange has received over 700 applications for new membership for all segments. MCX-SX had announced the launch of its membership drive on September 5, 2012, following an approval from the Securities Exchange Board of India (SEBI) to deal in equity, futures and options on equity, interest rate derivatives and wholesale debt market.
The introductory membership offer culminated on October 18, 2012, during which multi-city road shows were organised all across the country. In addition to the regular ‘Composite Member Category’, the exchange announced introduction of two new categories —‘Professionally Qualified Members’ and ‘Rural Entrepreneurship Members’. These categories were launched for greater financial inclusion and to harness the latent potential of domestic savings through various financial instruments proposed to be provided by the Exchange in its endeavor to create a deep, wide and liquid market.
Joseph Massey, MD and CEO, MCX-SX, termed the response overwhelming. It is a historic public verdict, which demonstrates their faith in our ability for 360-degree development of financial markets across equity, debt, SME, currency and other segments.
“With an all-round subscription from FIIs handling global brokerage houses, financial institutions’-promoted securities firms, corporates, banks promoted securities firms, retail and institutional brokers, professionals and rural entrepreneurs, we are confident to fulfill the Government and Regulator’s vision of true capital formation and employment generation,” Massey said.
The Exchange has already commenced the process of getting members registered with SEBI, which involves completing all documentation of members, scrutiny by the exchange and forwarding the application to SEBI for registration. After SEBI registers a member, it provides a registration certificate and a unique registration number. MCX-SX will also commence connectivity enablement of members with the Exchange and subsequently go live.