MCX-SX's turnover from equity trade touches Rs 1.53 lakh crore
Completing its first year as a full-fledged stock exchange, MCX-SX has clocked in a turnover of more than Rs 1.53 lakh crore from equity trading.
In the 12 months since it began operations on February 11, 2013, MCX Stock Exchange has recorded a total turnover of Rs 1.43 lakh crore from equity derivatives, while it has raked in a turnover of Rs 10,624 crore in the equity cash segment.
While the Financial Technologies (India)-promoted exchange witnessed a strong performance in first few months, the turnover saw a sharp plunge in last 5-6 months amid a payment crisis at commodity bourse NSEL, which was set up by the same promoter group.
The Forward Markets Commission is monitoring the recovery of dues of about Rs 5,600 crore at the spot commodity bourse which suspended trade in July last year after two dozen counter parties declared their inability to settle payments.
Since the crisis, the top management and board structure of MCX-SX has changed - it recently appointed Saurabh Sarkar (former CEO of United Stock Exchange) as CEO while former Home Secretary G K Pillai is now chairman.
All the FTIL group executives, including Jignesh Shah and Joseph Massey, had to resign from the board after regulator Securities and Exchange Board of India (Sebi) ordered a recast of the governing body for running the exchange at the time of its licence renewal in September 2013.
While MCX-SX turnover in cash segment had nearly touched the Rs 3,000-crore level in June, it has slid to below 1000-mark since August.
In December and January, the bourse recorded Rs 250 crore and Rs 267 crore respectively in cash segment turnover, marking its worst fall since the NSEL scam broke out.
The equity derivative turnover rose at a good pace during February-July, 2013 wherein it had crossed the Rs 30,000 crore-level. However since then, the derivative turnover has come down to below Rs 10,000 crore.
In January this year, MCX-SX saw a turnover of Rs 9,883 crore in the derivative segment as compared to Rs 7,339 crore in previous month.
Total volume of equity derivative contracts stood at about 50 lakh during the past one year.
The exchange, set up by Jignesh Shah-led Financial Technologies (India) Ltd (FTIL), commenced operations in the currency derivatives segment in October 2008. After a prolonged regulatory battle, it began operating as a full-fledged bourse with launch of equity trading in February 2013.
The debt market segment of MCX-SX was launched in June last year.
In September, market regulator Sebi renewed the licence of MCX-SX but asked the bourse to strengthen its corporate governance structure in wake of the NSEL crisis.
Later in the evening, MCX-SX chief executive Saurabh Sarkar said in a statement that the exchange would focus on "improving operational efficiency, growth of sustainable volumes and introduction of innovative products" going forward so as to attract retail investors, besides attracting new companies to list on the exchange.
"Following the inauguration by Finance Minister P Chidambaram the exchange has achieved several milestones in the last one year," he said.
"These include going live with trading of SX40, commencement of listing services with Dabur India, listing of first IPO with Just Dial Ltd and successful launch of the IRF (Interest Rate Futures) segment," Mr Sarkar added.
"Through this journey, the turnover of SX40 breached the Rs 1,500 crore mark and the Currency segment witnessed healthy roll-over and increase in open interest (OI) as well as the client base. The newly launched IRF segment too commands approximately 30-40 per cent market share."
