MCX-SX Equity and Equity Derivatives Live Feb 11
Luminaries from the Government, Regulators various industry sectors, financial fraternity and media were also present to witness this historic moment in India’s Capital Markets as India’s new stock exchange was officially announced open for trading in the new segment starting February 11, 2013.
Hallmark of MCX-SX will be its focus on growth and effective use of innovation and technology for encouraging true inclusion. This spirit was also witnessed at the inaugural function of new segments of MCX-SX as over 1,000 broker members and industry participants watched the live telecast of the launch by Shri. Chidambaram from three metros – Delhi, Kolkata, and Chennai – and from Ahmedabad.
The flagship index of MCX-SX – “SX40” – was also launched by the Hon’ble Finance Minister Shri. Chidambaram. SX40 will be a free-float based index of 40 large-cap and liquid stocks, representing diverse sectors of the economy. The base value of SX-40 will be 10,000 and with its base date being March 31, 2010.
The index is designed to measure the economic performance with better representation of various industries and sectors based on ICB, a leading global classification from FTSE. The stocks in SX40 have an industry cap at 20% +/- 2% band. The index allows fast entry for companies with better free float, market cap and liquidity. SX40 includes companies that have a minimum free float of 10% and is within the top 100 liquid companies.
Under the Capital Market Segment of MCX-SX, initially equity shares of 1116 companies shall be admitted for trading under “Permitted to Trade” Category with effect from February 11, 2013.
Out of the 700 membership applications received by MCX-SX, 405 applications have been already registered by SEBI.
Speaking on the momentous occasion, Mr. Jignesh Shah, Vice-Chairman MCX-SX, said, “I thank the Government and the Regulator for providing us an opportunity to contribute in development of India’s capital market. We believe the next round of growth will be made possible by creation of institutions which focus on inclusion, have strong underlying social impact and far-reaching economic benefits. At the same time, we realise that creating financial markets that are complete, globally competitive and technologically sound will be important to revive faith of global and domestic investors in India. It is our mission to achieve all this and more.”
Mr. Joseph Massey, MD & CEO of MCX-SX, said, “Launch of equity and equity derivatives segment of MCX-SX is just a step towards our efforts to provide Indian investors with wider choices of investment and risk management products that match with diverse risk profiles and investment appetites. We believe in the philosophy of healthy and steady growth on a solid foundation. Exchanges are critical infrastructure projects, which are instrumental in broad-basing the financial markets, developing additional asset classes such as bonds, SME segment securities, interest rate derivatives and imparting financial literacy.”
MCX-SX was granted the status of a “recognized stock exchange” by the Ministry of Corporate Affairs (MCA), Government of India on December 21, 2012. It received “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 on December 19, 2012.