MCX Stock Exchange aims to formally start stocks trading around the Diwali festival in mid-November, chief executive Joseph Massey said on Monday, in its quest to become the country's third major equities market.

The MCX Stock Exchange has been quickly taking the necessary steps to commence stock trading since the July approval by market regulator Securities and Exchange Board of India to trade in equities, equity futures, interest rate futures and wholesale debt products.

Massey made the comments during a news conference meant to mark the start of MCX-SX's drive to recruit broker members. Diwali is in mid-November and considered an auspicious time by many Indians.

By starting stock trading, MCX-SX, controlled by the Multi-Commodity Exchange of India, India's biggest commodity bourse, hopes to challenge the more entrenched Bombay Stock Exchange and the National Stock Exchange.