The Jignesh Shah-promoted MCX Stock Exchange (MCX-SX) is gearing up to take on its peers, BSE and the National Stock Exchange (NSE), by setting its eyes on the small and medium enterprise (SME) platform. The latest entrant in the stock exchange arena is planning to launch an SME platform next year, a top official said on Tuesday.
“There are about 26 million SMEs in India. As per a conservative estimate, at lest one per cent of them are profitable but lack equity participation. This number of SMEs will be even more than those listed on BSE. So, there is a huge scope for the SME platform. We are surely looking at this option, but will not disclose the details now,” said Joseph Massey, chief executive officer of MCX-SX.
“It will be a very innovative model,” said Jayesh Shah, vice-chairman, MCX-SX, while talking to reporters in Ahmedabad on Tuesday.
Added Massey: “We may think of it some time next year. At present, our focus remains on the equity and F&O (futures and options) segments on MCX-SX.”
The exchange has also announced it will appoint a state-level advisory board comprising capital market stakeholders such as brokers, investors, representatives, academic institutions and professional bodies. The state-level advisory board will focus on financial literacy drive at the taluka (block) level and also work towards financial inclusion.
“A national-level advisory board with of 15-18 members will be set up to represent the stakeholders and put their suggestions and feedback to the policy makers. This advisory board will have one or two representatives from state-level advisory boards and work towards resolving their problems,” Shah said during a roadshow for membership drive in Ahmedabad.
MCX-SX is likely to commence full-fledged operations from Diwali and will have its own index on the lines of BSE’s Sensex and NSE’s Nifty.
“We, too, will have a similar index as Sensex or Nifty. Details such as the name of the index and number of scrips put on it, will be declared at a right time,” he further added.
Commenting on the price war with competing exchanges, Shah noted it was to bring competition in the exchanges space. “This is no price war as such. We are encouraging competition. It is the biggest leveller and will bring healthy competition. This will make prices more real and optimal for stakeholders,” he said.
