Financial Technologies India (FTIL), promoter of the Multi Commodity Exchange (MCX), on Monday said that it would look at bringing in foreign partners to its stock exchange, but the bourse would have an India-focussed model.
FTIL, whose group entity MCX is the largest commodity exchange in the country, with about 90 per cent market share, set up its stock exchange, MCX-SX, recently.
Currently, MCX-SX provides currency futures trading and is awaiting market regulator Securities and Exchange Board of India’s (Sebi’s) nod to start equity trading.
Asked whether FTIL would rope in some international exchanges as its partners in the stock exchange, its Chairman and Group CEO Jignesh Shah said, “We will do that at the right time, subject to the regulatory permission or within the regulatory framework of India.”
He added that any decision in this regard would be taken only after the necessary regulatory approvals.
FTIL had sought Sebi’s nod in December last year for allowing equity and F&O segment trading at its stock exchange.
When asked whether the approval was getting delayed, Shah said, “There is no delay, there is a process to be followed, compliance to be made. It is going at a satisfactory pace.”
On how much time it would take to start operations after getting the approval, Shah said, “Rather than commenting on time, I would say we want to follow the right process...And we will deliver the best. We are a long-term player.”
Asked if bringing in foreign partners would help in the business, Shah said, “We would definitely bring in the global practices, which are good for the business. We have always been pioneers in international collaborations...
“We were the first to tie up with the London Metal Exchange... We will definitely follow the world-class practice. We have the maximum number of alliances with global exchanges.”
Shah said FTIL group is the second largest one, after American commodity bourse CME (Chicago Mercantile Exchange) in terms of network of exchanges.
The FTIL Chairman, however, asserted that the exchange would follow an ‘India model’, where domestic savings could be channelised for corporate growth in the country and capital mobilisation through foreign institutional investors (FIIs) would be secondary.
FTIL has set up 10 exchanges, including five outside the country. It runs the largest number of exchanges in the world after the NYSE group.
The group has also been ranked as the second largest player in the Exchange Technology business globally after Nasdaq OMX.
It has tie-ups and alliances with 10 leading exchanges across the world and deals with five international regulators ranging from the most conservative (Emirates Securities and Commodities Authority) to the most forward looking (Monetary Authority of Singapore).
Shah has been featured in the Institutional Investor’s Online Finance list as one of the top 30 international e-finance innovators, published from New York. Besides, Washington-based Futures Industry Association has named him among Top Industry Leaders.