Introduction to MSE
The Metropolitan Stock Exchange of India Ltd., also known as MSEI, is raising Rs 238 crore through a fresh equity issuance from big players, including Groww’s parent company Garage venture, Rainmatter Investment funded by India’s most profitable brokerage house ZERODHA, BSE-listed company Share India Securities Ltd, and Securocorp Securities India Private Limited, as per the exchange's disclosures. The bourse will issue 119 crore shares with a face value of Rs.1 each
The Metropolitan Stock Exchange of India Ltd., recognized as a stock exchange under Section 4 of the Securities Contracts (Regulation) Act is a full-service national-level stock exchange with a license to operate in Equity, Equity derivatives, Currency derivatives, Debt, and small and medium-sized enterprise (SME) company.
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History and Background of MSE
The MSE has a pretty interesting backstory. It started its journey back in 2008 as the MCX Stock Exchange. Initially, it was all about currency derivatives, but it had bigger dreams. In 2013, it got the green light to trade in other securities too.
I remember when it first launched - there was quite a buzz in the financial circles! People were excited about having a new alternative to the big players like NSE and BSE.
However, as the exchange failed to generate volumes, its net worth started to lose making the exchange.
According to a July 2023 Sebi order, MSE’s Chairman in a letter dated January 25, 2022, wrote to the market regulator that the net worth of the exchange had “been continuously going to loss and if the exchange’s net worth falls below Rs 100 crore, it needs to be closed down.”
MSE again announced the starting exchange from January 2025 as per MSE circular, MSE's latest circular is attached, you can check here.
As per the circular latest update:-
MSE has 2 indexes 1st index is SX40 (45335) which is the float weighted average of a large top 40 company and 2nd index is SXBANK (25811), currently, MSE will start SX40 future and option derivate segment from 3rd January 2025 with weekly and monthly expiry contract on Friday.
If any holiday on Friday then weekly and monthly expiry will expire on Thursday.
Expiry details are mentioned as per the MSE circular dated 29th Nov 2024.
|
Contract period |
Index |
Existing Expiry day |
Current / Revised expiry day |
|
Weekly expiry |
SX40 |
Thursday of every week |
Friday of every week |
|
Monthly expiry |
Last Thursday of the expiry month |
Last Friday of the expiry month |
Key Features of MSEI
Products Offered
- Equity
- Equity derivative
- Debt
- Currency derivatives
- Interest rate derivatives
Regulatory Oversight
Just like its bigger siblings, MSE is regulated by SEBI (Securities and Exchange Board of India). So, you can rest easy knowing that there are strict rules in place to protect investors.
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Advantages of Trading on MSE
- Lower transaction costs: This is a big plus for small traders like me!
- Focus on SMEs: It's great to see an exchange that gives smaller companies a platform.
- Advanced technology: The trading experience is usually smooth and glitch-free.
Challenges Faced by MSE
- Low trading volumes: This can sometimes make it tricky to buy or sell quickly.
- Limited awareness: Many people still don't know much about MSE.
- Competition from established exchanges: It's tough to compete with the big names NSE and BSE that have been around for decades.
