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MCX Stock Exchange

The MCX Stock Exchange (MCX-SX), which is still some distance away from launching trade in equities, has already drawn up a strategy to lower costs significantly to take on established players. Although the MCX stock exchange, promoted by the Financial Technologies group, is waiting for approval from the market regulator, the blueprint is aimed at doing what the National Stock Exchange (NSE) did to the capital markets 15 years ago. At present, the exchange is confined to currency futures as the promoter group is trying to lower its stake to conform to the new shareholding norms. The deadline for stake dilution was extended by a year as the Financial Technologies group could not dilute its stake within the earlier deadline. MCX-SX is planning to extensively lower the entry cost, the cost of transaction, and the cost of technology. Under the plan, there will be several more segments to trade. Mutual funds and original public offers might also be distributed.

MCX-SX executives said the membership fees could be as low as one-tenth of what existing exchanges were charging. The Bombay Stock Exchange's (BSE's) membership costs around Rs. 80 lakh in deposits while NSE's is three times this. Transaction charges would be around half the customary level, they added. As India's new generation stock exchange, MCX-SX has always worked towards development and inclusive growth of India's financial markets.

The Exchange has joined hands with many agencies like the government, trade bodies and educational institutions to drive financial literacy for financial inclusion and encourage incorporation of global best practices in the industry. In line with these initiatives, MCX-SX recently tied up with the Ministry of Corporate Affairs (MCA) to launch various collaborative efforts in promoting the need of adopting international best practices and corporate governance for making Indian businesses globally competitive.