MCX-SX to reduce promoter holding

The promoters currently hold 10 per cent in the exchange.

“The combined shareholding of MCX and Financial Technologies (FTIL) in the equity share capital of MCX-SX will be brought within the 5 per cent limit in 18 months,” said Shah.

Set to make an entry as the third stock exchange in the equities market,which is dominated by National Stock Exchange,Shah said that the exchange will focus on illiquid counters and push for retail participation. Currently,MCX-SX offers trading in currency futures contracts.

“In China the retail participation is upto 65 per cent and that penetration is not here. We will push for retail participation,” said Shah.

Joseph Massey,MD and CEO,MCX-SX,said that the bourse would look at ways to increase liquidity in the large number of illiquid companies listed on the existing exchanges. The BSE has over 5,000 companies listed,but the number of actively traded counters is only around 3,000.

“There is a need to look beyond market-making as a means of infusing liquidity in such scrips. We will be open to all. We will follow an inclusive model,” Shah said.

MCX-SX,however,did not offer a timeline on when it will launch stock trading and said that it will have to get members first and the board will meet soon to chalk out the plan.

FTIL shares gained 3.05 per cent on the BSE. MCX shares,however,recorded a fall of 2.5 per cent.