Tuesday, November 5, 2013

India’s New Stock Exchange: MCX-SX

By Brittiny B. Razzano
Brittiny Razzano is a third-year law student at Albany Law School, concentrating in Business Law, Estate Planning, and Tax Law.  She graduated from Union Graduate College in 2011 with a Master's in Business Administration and was inducted into the Beta Gamma Sigma International Honor Society.  She graduated magna cum laude from Bentley University in 2008 with a Bachelor’s in Finance and was inducted into the Financial Management Association National Honor Society.  Prior to law school, she worked in the financial services industry.  
Ms. Razzano serves in multiple leadership roles at the law school including: Pro Bono Project Director for the Elder Law Project, Lead Articles Editor for the Albany Law School Journal of Science and Technology, President of the Business and Tax Law Society, Director of Finance for the Pro Bono Society, and Vice President and Pro Bono Liaison of the Albany Law School Chapter of the National Academy of Elder Law Attorneys.
Ms. Razzano interned with the Low Income Taxpayer Clinic at Albany Law School, as well as the NYS Department of Financial Services and the NYS Department of Taxation and Finance. She also clerked at the Pierro Law Group, L.L.C. and the Timothy S. Hart Law Group, P.C.  She is currently a law clerk at the Herzog Law Firm, P.C .
Ms. Razzano prepared this paper for Professor Alexandra Harrington’s course in International Business Transactions, Spring 2013.

India’s new stock exchange, the MCX-SX, commenced trading earlier this year. The first section of this paper begins with a review of some of the history of India's stock markets as well as its economy. It then examines securities, regulation, settlement information, funds and Global Depository Receipts (GDRs), some background on Indian and foreign investors, and taxes It also reviews the two current competing stock exchanges.

The second section provides information on the MCX-SX itself, including a background, a discussion of its index, SX40, and the perceived advantages and challenges of the exchange.

The final section provides a discussion of where others in the industry believe the MCX-SX is headed, as well as what are the important aspects of an exchange to an individual investor.

The main purpose of this paper is to provide a survey. As such, many topics that could each be the subject of an extensive paper are only touched upon briefly.    
To read the paper, open HERE.