NSE Allows Trading in MCX Shares
NSE, India’s premier stock exchange which for long has waged a bitter and public battle with Financial Technologies (FT) group both in and out of the courtroom, late on Wednesday allowed shares of the Multi Commodity Exchange (MCX) to trade on its equity platform from Friday. Interestingly, the NSE decision is voluntary since MCX, which had a very successful IPO in February-end, did not apply for listing on the country’s biggest exchange by turnover and volumes. MCX, an FT group company, is set to list on the BSE on Friday.
The move by NSE came after several brokers, fearing loss of brokerage, approached the bourse’s management to allow MCX to be traded on its equity platform. The NSE circular dated March 7 said that the MCX stock will trade in NSE’s capital market segment from March 9, the day it is listed on the BSE. This means that MCX is under no obligation to comply with NSE’s rules for listed stocks and also the listing agreement, including filing of annual reports, notices, press releases, etc. A search on NSE’s website showed that there are more than 10 stocks which trade on the bourse without a formal listing agreement , covered under its ‘permitted to trade’ rule.
Sources, however, also indicate that the NSE decision can in no way be seen as a move to smoke the peace pipe with its warring competitor. Spokespersons for NSE and MCX declined to comment on the development.
Source: Times of India