Liquidity key as new stock exchange set to start trading
the BSE, according to data from World Federation of Exchanges.
But combined that's only about a quarter of the $2.6 trillion traded in China's Shanghai stock exchange last year, according to the same data.
MCX-SX is betting trading volumes will grow substantially in coming years as the Indian government pushes initiatives to bolster mutual fund and insurance investments in a bid to bring more retail investors into stock markets.
That is looking like an uncertain bet so far. Net outflows from equity-focused funds reached 108.16 billion rupees ($2.03 billion) last year according to data from the Association of Mutual Funds in India.
Those redemptions have come as investors have cashed in the more than 20 percent gains in the NSE and BSE's benchmark indexes last year.
"It may be successful with new breed of professionals initially," said G. Chokkalingam, chief investment officer at Centrum Wealth Management in Mumbai.
"But in the long run they need to tap successful, higher end broker members."
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