MCX-SX received record 700 applications during the six weeks of its membership drive, which it claims to be the highest number of members signed up by any exchange for equity and WDM segments
Mumbai: MCX Stock Exchange (MCX-SX) on Monday said it has signed up 700 members for its new equity exchange, which is likely to open in November-December this year, reports PTI.
"We have received record 700 applications during the six weeks of our membership drive, which is the highest number of members signed up by any exchange for equity and wholesale debt market (WDM) segments," MCX-SX Managing Director and CEO Joseph Massey told reporters.
NSE, India's biggest exchange by volume, launched its operations with nearly 200 members in 1994. BSE started operations in 1875 with 318 members.
MCX-SX, which currently operates only in currency derivatives segment, had announced the launch of its membership drive on 5th September. MCX-SX had offered a competitive transaction fee and membership fee structure of Rs30 lakh.
The Exchange has already commenced the process of getting members registered with Securities and Exchange Board of India (SEBI). After SEBI registers a member, it provides a registration certificate and a unique registration number.
"We are ready with the framework and waiting for member's registration process and board decision to go live before year-end," Massey said.
The exchange has already received permission from the market regulator SEBI to deal in stocks, equity futures and options, interest rate derivatives and wholesale debt markets.
"The exchange will commence barometer index of SX-40," Financial Technologies Chairman and CEO Jignesh Shah said. It would compete with other benchmark indices like BSE's 30-share Sensex and NSE's 50-stock Nifty.
MCX-SX intends to have a dedicated platform for small businesses and SMEs should aspire to raise up to $20 million annually through such platforms.
"Our entrepreneurs are best in class. They require risk capital. If China can raise $12 billion in fresh capital, I think we have to aspire to raise a minimum $10-20 million of fresh capital by SMEs," Shah said.
Despite difficult economic climate and high interest rates, the company has reported impressive September quarterly results, with 43% increase in net revenues and 38% increase in net profit
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