MCX SX application rejected by watchdog

SEBI-MCXThe application submitted by MCX Stock Exchange Ltd to start its own equity stock exchange has been rejected by the market watchdog, The Securities and Exchange Board of India (SEBI).

In a statement that was published by the regulator's website, "The concentration of economic interest in a recognized stock exchange in the hands of two promoters [founders] is not in the interest of a well-regulated securities market."

MCX-SX is multi-commodity exchange and is owned by Multi Commodity Exchange of India, or MCX. It is the largest commodity futures bourses. Its Financial Technologies India Ltd. MCX-SX has already started the trading of currencies futures in October.

It has been trying for long to start its own equity exchange and with the same idea it had submitted its application. But time and again its application has been rejected.

SEBI has sited that non-compliance with shareholding regulation is the reason behind the disapproval and that MCX-SX has also withheld information relating to the ownership of the exchange.

In an email response, MCX-SX said that there are having proper consultation and that they are taking advice from legal counsels.