The Hindu Business Line : MCX plans stock exchange for small, medium firms

Future plans
`We are technologically ready to start the exchange even tomorrow.'
MCX is also keeping the options open for taking over one of the regional stock exchanges.

Mumbai , Jan. 20

Multi Commodity Exchange of India Ltd has approached the stock market regulator Securities Exchange Board of India (SEBI) for permission to start a separate stock exchange for small and medium companies.

Mr Lamon Rutten, Joint Managing Director of MCX, said that the exchange has sought the SEBI's permission for setting up an exclusive trading platform for SMEs. "We are technologically ready to start the exchange even tomorrow but for the clearances from the regulators."

MCX move comes close on the heels of the SEBI announcement in December to form an in-house committee to study and recommend guidelines for an exclusive stock exchange for SMEs.

Separate platform

"We are planning to form a separate trading platform for the SMEs. We have already formed a small in-house committee to study and prepare roadmap for the same," the SEBI Chairman, Mr M. Damodaran, had said.

Merchant banking circles believe that the SEBI will offer some relaxations in terms and disclosures to SMEs planning to hit the market in comparison to stringent regulations for stocks listed on the NSE and the BSE.

Refusing to reveal any financial details of the venture, Mr Rutten said, "It is too early to comment on this. However, given the financial background of MCX and its parent organisation, Financial Technologies, funding should not be a problem. We will provide what ever it takes."

Regional exchanges

MCX is also keeping the options open for taking over one of the regional stock exchanges and turning it around exclusively for small and medium enterprises (SMEs). "We are also considering the option of buying out existing smaller exchanges, but there are some regulatory issues, which needs to be sorted out. The Government should also encourage regional exchanges to demutualise like BSE and NSE," he said.

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