MCX-SX to have 40-stock barometer index

September 12th, 2012 - 9:30 pm ICT by IANS  

Sensex New Delhi, Sep 12 (IANS) MCX-SX, the new entrant to the stock market trading, Wednesday said its barometer index will be SX-40 which will be a free-float-based index of 40 large market cap and liquid stocks representing most important sectors.

MCX-SX is positioning itself as premium exchange and SX-40 would compete against Bombay Stock Exchange’s 30-share Sensex and National Stock Exchange’s 50-stock Nifty.

It will go live with equity cash and derivatives trading on its platform from Diwali.

MCX-SX will collaborate in its indices initiatives Indian Statistical Institute (ISI), London’s FTSE and its Indian partner Financial Technologies Knowledge Management Company (FTKMC) for developing benchmark domestic and global indices.

These indices may be used as performance benchmarks and form the basis for many financial products such as institutional and retail funds, exchange traded funds and derivative contracts.

MCX-SX also plans to appoint state-level advisory boards, comprising of members, investor associations, academic institutions and all other stakeholders of the capital market, for financial literacy.

It will have a national advisory board comprising members co-opted from state level boards and others operating at national level.

After it set a lower deposit and net worth structure for membership, the exchange said its transaction charges would be lower than the BSE and NSE.

As part of its membership developmental programme, MCX-SX is offering membership in three categories — composite members, professionally qualified members and rural entrepreneur members.

Composite membership is available for all eligible persons. Two special categories of membership, namely professionally qualified member and rural entrepreneur member, are introduced for financial inclusion and market development.

While the former is applicable for professionals with an experience of capital market ecosystem such as investment banking, private equity and venture capital, the rural entrepreneur membership category is designed for persons located in those 5,924 sub-districts and talukas where there is no capital market penetration.

“We remain committed to systematic development of markets through strategic use of information, innovation, education and research. Cost optimisation and broad-basing of investor participation will be crucial for India’s capital market development and inclusive growth of the economy, as is envisaged by our regulators and the government,” said Joseph Massey, managing director, MCX-SX.

MCX is conducting road shows across eight cities - Mumbai, Ahmedabad, Delhi, Kolkata, Chennai, Hyderabad, Jaipur and Indore - to create awareness on the same.

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