The government has notified MCX Stock Exchange, a part of Jignesh Shah-led group that also owns country's largest commodity bourse MCX, as a "recognized stock exchange", where trading would not be deemed as speculative transactions.

MCX Stock Exchange (MCX-SX) was first granted recognition by SEBI in September 2008, but it was allowed to conduct trading only in the currency derivatives segment. After the approval MCX-SX would be able to offer additional asset classes such as equity and equity F&O (Futures and Options), interest rate futures and wholesale debt segments. 

At present, SEBI has granted permanent recognition to eight stock exchanges in the country, but only two of them -- BSE and NSE (National Stock Exchange) -- are operating as active national level bourses across the segments. MCX-SX and USE (United Stock Exchange) are present in the currency derivatives trade only.

With SEBI's latest decision, MCX-SX is likely to become the third major national-level full-fledged stock exchange.