The country's top stock exchange BSE and its counterpart in commodity trading MCX have initiated a dialogue to explore a tie-up entailing sharing of technology for cross-holding to gain global markets.
The crossholding of the Bombay Stock Exchange and Multi Commodity Exchange in each other could be 5-10 per cent, said a person familiar with the development.
BSE Chairman Jagdish Capoor and MCX promoter Financial Technologies' Chairman and Group CEO Jignesh Shah met last week and a potential partnership between the two exchanges was discussed, said the person, who did not want to be named.
The meeting comes amid reports that National Stock Exchange is also evincing interest to provide technology support to rival BSE.
When contacted, Shah told PTI, "They (BSE) have a strong brand and we have the best technology and domain knowledge and the combination could become a leading global player and fulfill the government's vision (for strengthening the market)."
Shah, however, did not elaborate further on the dialogue or the contours of a tie up, while Capoor could not be reached for his comments.
Explaining its global reach, another MCX official said that FTIL group was the second largest after the US commodity bourse CME (Chicago Mercantile Exchange) in terms of network of exchanges.
FTIL group has set up 10 exchanges, including five outside the country and it runs the largest number of exchanges in the world after the NYSE group, the official noted.
Besides, the group has been ranked as the second largest player in the Exchange Technology business globally after Nasdaq OMX, while it has tie-ups and alliances with 10 leading exchanges across the world.
It deals with five international regulators ranging from the most conservative (Emirates Securities and Commodities Authority) to the most forward looking (Monetary Authority of Singapore).
Interestingly, FTIL, which runs the country's largest commodity bourse with about 90 per cent market share, is also awaiting capital market regulator SEBI's nod to start equity trading business through its own stock exchange.
Talking about plans to start cash and F&O trading in equity, Shah had said last week that he was not concerned about the current market conditions and competition from existing players.
"I strongly feel it is the right time to enter... I do agree that BSE and NSE are there... But more players would only help expand the market, as has been the case with telecom, banking and aviation sectors," he had said.
