Mumbai: India’s newest stock exchange MCX-SX began trading in equities on Monday, following the end of a battle with the regulator over its promoters complying with ownership norms.
The bourse has 1,116 companies listed on it compared with 1,662 on the National Stock Exchange (NSE) and 5,195 on the Bombay Stock Exchange (BSE).
MCX-SX’s flagship index, the SX40, comprises 40 diversified stocks and will start being cited shortly.
The first day on the new exchange saw a turnover of Rs.12.53 crore with 198 members enabled for trading, the bourse said in a release on Monday. Out of the 700 membership applications received by MCX-SX, 405 have been registered by the Securities and Exchange Board of India, or Sebi.
“MCX-SX’s entry will be beneficial for the markets and investors because competition will bring in more innovation and improve market efficiency,” said Motilal Oswal, chairman and managing director of Motilal Oswal Financial Services Ltd.
NSE was set up in 1991 and is the 11th largest stock exchange in the world by market capitalization and the largest in India by daily turnover and number of trades in equities and derivatives.
Average daily traded volume in the cash segment is Rs.10,754 crore and Rs.1,22,419 crore in derivatives. NSE has 1,404 brokers.
BSE, set up in 1975, is Asia’s oldest stock exchange and home to the Sensitive Index, or Sensex, India’s benchmark equity index. It’s currently the 10th largest stock exchange in the world by market capitalization. It has 1,405 brokers. NSE and BSE are the two most significant stock exchanges in India, with most share transactions taking place on them.