As per directives of the Securities Exchange Board of India (Sebi), the Multi Commodity Exchange (MCX) has floated a separate company, which will handle currency futures trade in the country.
The separate entity being named as ‘MCX stock exchange’ is being promoted wholly by MCX and have again sought permission from Sebi.
MCX had earlier applied to Sebi for necessary clearance along with the National Stock Exchange (NSE) for launching currency futures. While Sebi has approved NSE’s proposal to launch currency futures, the regulator asked MCX to set up a separate entity first.
“We have the necessary expertise and infrastructure to launch such a product and we hope to get the nod from Sebi shortly,” Massey Joseph, managing director & chief executive officer, MCX, told FE.
According to an MCX official, the trading member for the proposed currency derivatives exchange will be subject to a balance-sheet networth requirement of Rs 1-crore, while the clearing member would be subject to a balance-sheet networth requirement of Rs 10-crore. The trading member and sales persons in the currency futures market must have passed a certification programme which is considered adequate by Sebi, the official said.