MCX Stock Exchange Ltd. will compete with the BSE Ltd. and National Stock Exchange of India Ltd. from Feb. 11 after the bourse’s equity derivatives trading was inaugurated by Finance Minister Palaniappan Chidambaram.
The new exchange’s benchmark SX40 Index of 40 large and liquid stocks, which includes India’s biggest companies by market value Reliance Industries Ltd., Tata Consultancy Services Ltd. and Oil & Natural Gas Ltd., was unveiled by Chidambaram in Mumbai today.
The bourse will battle for a share of the $1.3 trillion stock market, with the Goldman Sachs Group Inc.-backed National Stock Exchange and the BSE, Asia’s oldest. While the NSE controls more than 90 percent of the nation’s $28 billion equity derivatives market and handles 75 percent of the stock trades, the MCX-SX had a 44 percent share of the currency-futures market in the year ended March, surpassing the NSE’s 39 percent.
About 25 million Indian households invest directly or indirectly in the capital markets, according to a survey in July 2011 by the National Council of Applied Economic Research. Retail participation at 1.3 percent of the population compares with 9.4 percent in China, 41 percent in Australia and 18 percent in the U.K., Thomas Mathew, a former joint secretary in the Ministry of Finance’s capital markets division, said in an interview on Sept. 5.