MCX-SX launched their Equity & Derivatives Segment today with 700 members and 1116 Listed Stocks and their SX 40 Index
The Launch Equity & Derivatives Segment of MCX-SX ~India’s Newest Stock Exchange
Just returned from the launch of the Equity & Derivatives Segment of MCX-SX,India’s New Stock Exchange at Hotel Trident in Mumbai ~ packed Regal Room and live launch functions in four cities beamed on the screens as were also the Live Proccedings
Met up with many,including Joseph Massey the MD and CEO of MCX-SX and Dr Bandi Prasad,President of FTKMC the knowledge arm of MCX, in our Capital Markets
Met two ex BSE CEOs but did not see any from the current top management of BSE and NSE ! ~ MCX-SX is now their competitor ~Even the Invite Cover ,if you observe above, does not show BSE with a history of 138 years or NSE with a history of 20 years !
A 5 Minute AV was shown highlighting moments of Capital Market History and MCX-SX ~ A few Short Speeches later Finance Minister, P Chidambaram rang the Gong @ 4.15 pm to launch the Equity & Derivatives Segment of MCX -SX and also launced the New SX 40 Index and even punched in a symbolic Trade ~ quite ironically it was a Derivatives Trade and he had just sounded an alarm in his speech of how concerned he is of the high level of Non Delivery Trades !
MCX-SX begins Trading on Monday
SX 40 ~ The Index of India
The SX 40 is tagged as the Index of India by MCX-SX~ It is a free float based index with a starting base of 10000 as on March 31,2010.It has 40 top large cap Consitituents ~ all the 30 of the BSE Sensex except for the two S’s ,State Bank of India and Sterlite ! ~ Although Wonder Why these have been excluded though it should meet their stated criteria of positive networth,free float of at least 105 and within top 100 liquid companies~ they also have Industry capping at 20%( +/-) 2% band ~ and with HDFC Bank and ICICI Bank the current weightage is already 22% for Financials (it’s 29.4% for Nifty and 26.4% for Sensex) and thus State Bank could not be accommodated ~ or probably not in the 1116 Companies that are listed and will begin trading on Monday ! ~ we’ll know Monday!
Interestingly SX 40 has Zee Entertainment as a constituent which neither the Nifty nor the Sensex has got !
Some noteworthy speech bytes…..largely verbatim but definitely in context
Ashok Jha ~ Chairman MCX-SX
“I am often asked why another Exchange when two already exist!? and my simple answer to that is because Competition benefits the Consumer”