Next 8-9 months, we will evaluate all the asset classes: Mrugank Paranjape, MCX

Posted Monday 15th January 2018 04:20:22 AM by Shreyaj

he Securities & Exchanges Board of India (Sebi) board last week took the decision to grant universal licences for exchanges which means players like you have a huge opportunity. What is going to be the road map?
This was a news that was long awaited and probably ended 2017 in terms of charting out what all of us will do in 2018.
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MCX-11.35 (-1.21)

From our perspective, we will use the next eight to nine months to do two things for which we are evaluating the opportunities. We believe there is a great synergy with some of the asset classes and currencies definitely but we will evaluate all the asset classes before really making up our mind and eight-nine months is really good time for us to prepare.
We have made representations earlier to Sebi that it is not a completely level playing field between the ecosystem of commodities and the ecosystem of equities. Therefore, we will attempt to use these next eight-nine months to bring in as much development as we can do so that we can get that equality or at least that level playing field.

Is nine months enough time because the Sebi chairman specifically spoke of three-year timeframe but now a time line of nine months have been given to put the back-end in place. Secondly is it right to say that to begin with, you could be looking at currency because that would be something which would be an easy transition for you and perhaps equity still might be sometime away?

commodity tips - On the second one, I will admit that it is a bit premature to commit or confirm because this is not something which will be a decision made by just one individual or by just one team. My entire management team will be involved, the entire board will be involved, we have had a couple of discussions in the past where we have sort of evaluated what are the opportunities but this will be a very detailed discussion with stakeholders including members, including shareholders. To your other question, yes, we do need more time and as have been enumerated, the three year timeline had been spoken about for rolling out of institutional participation, rollout of new products, creation of clearing corporations, their recognition etc. These were all the tasks that we were able to achieve in those three years. A lot of them have been achieved in the last two and a half years by SEBI. Last nine months has been phenomenal in terms of what we have achieved but I think to get everything done in the next nine months will be a challenge but I think all of us have to rise to it ( crude oil mcx tips ).

After much fanfare, it has been launched. You are trying to resolve your own teething issues. Tax is something that one hopes would be addressed in the coming budget. When do we see Sebi allowing market makers to go for option contracts?

nickel mcx tips

We really need to put a perspective and take two or three models to say what is the perspective with which we should evaluate it. Is it the international model in which case we are already quite successful because if you look at the ratio of options to futures turnover in China or in the US, we are pretty much closing in on that gap in just two months time. If you then take the Indian equities, it is completely skewed because it has index participation, it has some very short-term participation and also it is something which we are seeing after 15 to 18 years of the product being in place. From that perspective, we are very happy with the way the market has responded.