MCX-SX derivative turnover climbs 54%, cash segment up 13%

Its cash segment turnover increased to Rs 1,118.86 crore in Oct from Rs 990 crore in Sept, 2013

Recovering some lost ground, the troubled Financial Technologies-promoted bourse MCX-SX saw a 53.76% jump in its equity derivative turnover to Rs 10,967.88 crore for October, while its cash market turnover rose by 13%.

 

As per the latest data available with MCX-SX, its cash segment turnover increased to Rs 1,118.86 crore in October from Rs 990 crore in September, 2013.

 

MCX-SX, which began functioning as a full-fledged bourse in February this year, had shown strong growth earlier this fiscal in both equity derivative and cash segments.

 

While its equity derivative turnover had consistently climbed from Rs 6,607 crore in April to Rs 32,686 crore in July, it witnessed dip in August as well as September. The bourse' turnover stood at Rs 7,133 crore in September, 69% lower than the figure recorded in August.

 

During October, the total number of equity derivative contracts on the bourse stood at 3.57 lakh as against 2.57 lakh in the previous month.

 

In the cash segment, its turnover had reached to over Rs 2,000 crore in May and jumped close to Rs 3,000 crore in June from just Rs 33 crore in April. However, its cash turnover began to slip in July. It managed to retain Rs 1,000-crore level till August, before dipping to Rs 990 crore in September.

 

MCX-SX was set up by Jignesh Shah-led Financial Technologies, which has over 99% stake in NSEL (National Spot Exchange Ltd). NSEL is currently facing a Rs 5,500 crore payment crisis.

 

In the wake of deepening crisis at NSEL, Securities and Exchange Board of India while renewing MCX-SX's licence in September had asked it to strengthen its governance structure.

 

The market watchdog had also asked MCX-SX to constitute a committee of two independent directors and three institutional investor nominees to oversee key business decisions, policy matters and appointments of top management.

 

Following Sebi approvals, the exchange had earlier this month appointed former Union Home Secretary Gopal Krishna Pillai as its chairman and former acting chairman of LIC Thomas Mathew as the vice-chairman.

 

Multi Commodity Exchange (MCX) and Financial Technologies together hold 9.97% shareholding in MCX-SX, as on quarter-ended September 30, 2013.

 

NSEL has to settle dues of Rs 5,500 crore with its 148 members/brokers, representing 13,000 investor clients. Trade in the spot commodity bourse was suspended on July 31 by government orders.