MCX-SX, the latest entity to set up a full-fledged stock exchange, has said it expects to begin trading with about 1,000-1,200 stocks when it starts operations around Diwali.
â€œWe will list liquid stocks of BSE and NSE under permitted category initially,â€ MCX-SX vice-chairman Jignesh Shah said at the roadshow for membership drive.
â€œThough the research team is still working on this, the number of scrips could be 1,000-1,200 out of some total 5,500 scrips listed in other bourses,â€ MCX-SX managing director and CEO Joseph Massey said.
The exchange would begin negotiating with companies about six months later for proper listing on its bourse, official said. MCX-SX will commence trading in cash market and derivate segments (futures and options). The debt market trading would be introduced later.
Asked about reducing the market transaction fees and the trading volume at which the exchange would break-even, Massey said much depended on exchange earnings but indicated the bourse was likely to become profitable from the start.
MCX-SX had offered up to 50 per cent reduction in transaction fees and â€œcost optimalâ€ membership fee structure. Shah said lower transaction charges will be of direct benefit to investors. Moreover, the exchange would publish market reports in regional languages to help people not comfortable with English.
MCX-SX will provide 1,000 training programmes to its members for its first 500 brokers. However, this has nothing to do with the number of brokers that can enrol.