MCX-SX debuts today, triggering fresh battle of bourses for volumes
It is widely believed that the exchange will adopt aggressive methods and also unveil an incentive mechanism to get more broker members and companies on board so that it can garner as much market share as possible.
Interestingly, just a day ahead of the launch of the new exchange, the capital market regulator approved a market-making scheme for companies listed in the permitted category on stock exchanges. MCX-SX might try to leverage this. Permitted category companies refers to those entities that are already listed on existing stock exchanges and which a new entrant includes on its platform.
The top officials of the exchange, however, say that it is too early to talk about market share and the focus would be on building a firm foundation and broaden the overall equity market.
“The exchange is a long-term institutional set-up and we are focused on the processes and systems,” said Jignesh Shah, vice-chairman, MCX-SX. “We have not set any volume target,” he added while addressing media persons on Saturday after the exchange was launched by finance minister P Chidambaram.
While the exchange has decided to initially start operations with equity and derivatives, it will later try its luck
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