MCX-SX turnover plunges as NSEL crisis dents brokerages’ confidence

Oct 29 2013, 08:57 IST
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While the turnover has dropped in the other two national-level exchanges – NSE and BSE – as well, the drop in the case of MCX-SX has been much higher. Reuters While the turnover has dropped in the other two national-level exchanges – NSE and BSE – as well, the drop in the case of MCX-SX has been much higher. Reuters
SummaryNSEL crisis has caused Jignesh Shah-promoted MCX Stock Exchange a major setback.

range of R200 crore to R500 crore. Even the currency derivatives segment, which is seen as the most robust of all segments of MCX-SX, has taken a beating in the recent past. While even NSE has seen a corresponding fall in the turnover, the fall has been much more in the case of MCX-SX. From a high of R4.82 lakh crore, the total turnover has dropped to less than R1 lakh crore in October (till Oct 25). In each of the last three months, the drop in the turnover has been in excess

of 24%.

MCX-SX is not the only exchange promoted by Shah that is feeling the heat of the NSEL crisis. MCX has also seen a drop in the volumes though the introduction of commodity transaction tax (CTT) has also been a major factor behind that drop. Reports suggest that some brokerages have withdrawn or reduced the bank guarantees with the exchange (MCX), which implies a reduced commitment of trading with the bourse.

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