Both the stocks were up about 4 percent.
The approval has been given on condition that both the companies will cut their holding in MCX-SX to the stipulated limit of 5 percent with 18 months.
The approval from the Securities and Exchange Board of India comes after four years of legal battle between the companies and the regulator.
“The new exchange should offer some incentives to attract brokers and clients, which could be in the form of lower transaction charges payable on volumes generated by trading members,” Kisan Choksey, chairman, KR Choksey Shares and Securities, was quoted as saying in an Economic Times report.
With the approval, MCX-SX can trade in equity and equity futures & options, interest rate futures and wholesale debt segments.
“The new regulations have provided the much-needed level playing field,” Jignesh Shah, vice-chairman, MCX-SX, was quoted in the ET report.