MCX-SX gets nod for equity launch

Our Bureau Updated - March 12, 2018 at 12:42 PM.

SEBI has permitted MCX-SX to start trading in equities, equity futures & options, interest rate futures and wholesale debt segments.

For that, the promoters have to bring down their shareholding from 10 per cent to five per cent within 18 months. They should also convert warrants within 36 months, and should not indulge in buying back of shares as per the undertaking given by them to market regulator.

“The combined voting rights of FTIL and MCX in MCX-SX shall not exceed five per cent of the paid-up equity share capital of MCX-SX at any point of time,” SEBI said.

The Supreme Court had earlier set a deadline of July 10 for SEBI to decide on allowing MCX-SX to operate as a full fledged stock exchange.

Earlier, MCX-SX was denied permission by SEBI for equity trading, as its promoters had failed to comply with the shareholding requirements.

Following the order, Mr Joseph Massey, Managing Director and CEO, MCX-SX, said: “We would soon be formally announcing our future plans for implementing these segments.”

>badrinarayanan.ks@thehindu.co.in

Published on July 10, 2012 16:55