Multi-Commodity Exchange (MCX), the exchange promoter’s request to for starting its full-fledged stock exchange operation has succeed to bring attention of the Bombay High Court as it asked SEBI to reconsider the MCX-SX’s application within one month.
The MCX Stock Exchange (MCX-SX) pull down the SEBI in Bombay High Court to allow it to trade in stocks and other securities, refusing its norm to restrict the exchange promoters to support to shareholding structure.
Securities and Exchange Board of India dismissed MCX-SX’s application to set up a stock exchange in India, in 2010 due to owning norms that restrict the promoters’ stake in the exchange, and the regulator alleged that in MCX-SX’s application, the shareholding was higher than the stipulated level.
However the apex of the Bombay High Court had reserved its judgment in November 2011 over the petition filed by MCX Stock Exchange (MCX-SX).
After that on Wednesday the court resumed the case of capital market regulator’s rejection to MCX-SX and ordered in favour of firm by keeping set aside the SEBI rejection.
If lightening the analysts report, MCX-SX which wants to build a trading platform for equities along with stock exchange, is the first Indian firm to list on an exchange, started its functioning at Rs 1,387, a 34% premium to its issue price and has the potential to rise up to Rs 1650-1700 in the long term.
