Understanding the Metropolitan Stock Exchange : Exploration of the role of MSE in the financial ecosystem

Introduction to Metropolitan Stock Exchange of India

 The Metropolitan Stock Exchange of India Limited (MSEI) is a national-level stock exchange in India, recognized by the Securities and Exchange Board of India (SEBI). MSE offers an electronic, transparent and hi-tech platform for trading in Capital Market, Futures & Options, Currency Derivatives and Debt Market segments. The Exchange has also received in-principle approval from SEBI for operationalizing SME trading platform.

Incorporation of MSEI

MSEI was established on October 7, 2008, and initially commenced operations in the Currency Derivatives (CD) segment under the regulatory framework of SEBI and the Reserve Bank of India (RBI). On February 9, 2013, it launched its Capital Market Segment, Futures and Options Segment, and its flagship index, SX40, with trading beginning on February 11, 2013. The Debt Market Segment was introduced on June 10, 2013.

Mission and Vision of MSE

Mission Statement

To provide an efficient, transparent, and accessible trading platform that fosters financial inclusion through innovative technology solutions.

Vision Statement

To become a leading stock exchange in India by leveraging cutting-edge technology to ensure fairness, transparency, and efficiency in financial markets.

Products and Services of MSE

• Equity –MSE provides information on the equity segment in this section w. r. t. Current Market Reports, Historical Data, Product Information, Corporate Data etc.
• Currency Derivatives- In this section, information of the Derivatives segment of MSE is being made available viz., Current Market Reports, Historical Data and Product Information etc.
• Initial Public Offerings – Book building, Offer for Sale
• Debt –Debt securities, EBP, Corporate Debt reporting platform

Founder Details of MSE

The current Managing Director and CEO of the Metropolitan Stock Exchange of India (MSEI) is Ms. Latika S. Kundu She holds a Master ofBusiness Administration (MBA) degree with majors in Marketing and Finance from a program accredited by New Hampshire College, USA and also holds Bachelor of commerce (B.com) degree in Accounting and Finance from NarseeMonjee College of Commerce and Economics. Kundu is certified in Blockchain Technologies from the MIT Sloan School of Management, reflecting her forward-looking approach to financial technology. Before joining MSE, Kundu co-founded and served as the Chief Operating Officer of the Singapore Diamond Investment Exchange (SDiX). She has also held senior roles at prominent organizations such as:National Stock Exchange of India (NSE), MCX Stock Exchange (now MSE)Singapore Mercantile Exchange (SMX)Global investment banks like Lehman Brothers and Macquarie Singapore.

Kundu is recognized as an industry expert in setting up, launching, and managing exchanges, clearing houses, and depositories across various asset classes and products. Her extensive experience spans commodities, currencies, and capital market. She has also contributed to industry development by serving on boards such as:The Institute of Banking & Finance’s Capital Markets and Financial Advisory Services Examination Board (Singapore)&The Capital Market Committee of the Bombay Chamber of Commerce & Industry.

 – Achievements

Recognized as a Thought Leader, she has been honored with several accolades:

• Distinguished Alumnus Award by ITM in 2010.
• Named among the Top 50 Entrepreneurs by NarseeMonjee College in 2019

Under her leadership, MSE is focused on:

• Strengthening its position as a preferred exchange in India.
• Enhancing financial inclusion for all market participants.
• Driving innovation in advanced commodity trading and capital markets

Funding Details of MSE

The fund raising will see participation of marquee names including Billionbrains Garage Ventures, which is the promoter entity of Groww; Rainmatter Investments of Kamath brothers of Zerodha; Securicorp Securities India, and Share India Securities.

Recent Funding Initiatives

1. ₹238 Crore Fundraising (December 2024):
   • MSEI announced plans to raise ₹238 crore through private placement of equity shares.
   • Prominent investors include Billionbrains Garage Ventures (Groww’s parent company), Rainmatter Investments (Zerodha founders’ investment arm), Share India Securities, and Securicorp Securities India.
   • The shares were issued at a face value of ₹1 with a premium of ₹1, subject to shareholder approval in an Extraordinary General Meeting (EGM)
2. ₹120 Crore Fundraising (December 2024):
   • Another tranche involved raising ₹120 crore by issuing 1.19 billion equity shares at a similar valuation.
   • Share India Securities committed ₹59.5 crore for a 4.958% stake in MSEI’s post-issue paid-up capital

Historical Funding

• In earlier years, MSEI received substantial investments from public sector banks (e.g., SBI, Bank of Baroda, PNB) and private institutions like HDFC Bank, Edelweiss Commodities, and IL&FS Financial Services to support its operations after facing financial difficulties.
• By October 2017, MSEI had raised approximately $32.31 million in funding rounds

Purpose of Funding

The funds are intended to:

• Strengthen MSEI’s financial base and operational efficiency.
• Expand its offerings in equities, derivatives, and currency trading.
• Enhance trading volumes and market competitiveness, especially in light of new regulatory changes by SEBI

Billionbrains Garage Ventures (Groww):  A leading investment platform revolutionizing retail investment in India.

Rainmatter Investments: The fintech incubation and funding arm of Zerodha , focused on fostering innovation in India’s financial ecosystem.

Securicorp Securities: A financial services provider offering a range of investment and advisory solutions.

Share India Securities: A prominent player in stockbroking, commodity trading and financial services.

Growth and Revenue of MSE

 Awards and Recognition of MSE

The Metropolitan Stock Exchange of India (MSE), one of India’s recognized stock exchanges, has received several awards and recognitions for its contributions to the financial sector.

• MSE Samman Recognition:In 2021, MSE introduced the “MSE Samman” recognition to honor individuals and organizations for their dedicated service and contributions to the exchange’s ecosystem.
• Top Open Interest Generator:MSE was recognized as the “Top Open Interest (OI) Generator” in 2018, reflecting its significant role in fostering liquidity in financial markets.
• Regulatory Milestones:MSE became the first Indian exchange to receive SEBI approval for launching weekly interest rate futures (IRFs) and weekly futures and options in cross-currency pairs, showcasing its innovation in product offerings.
• Technology and Transparency:The exchange is known for leveraging advanced technology to ensure transparency and efficiency in trading, which has been a cornerstone of its operations

Conclusion

In conclusion,MSE has consistently expanded its offerings and operations, including the launch of its flagship index SX40 and the SME trading platform. With a mission to foster financial inclusion and a vision to lead through technological innovation, MSEI is positioning itself as a key player in India’s financial ecosystem. MSEI’s strategic fundraising initiatives aim to solidify its position as a significant player in India’s financial markets while addressing operational challenges.Historically backed by investments from major public sector banks and private institutions, MSEI has overcome financial challenges to emerge as a forward-looking exchange. Its ongoing efforts to innovate and adapt to regulatory changes reflect its determination to remain a significant player in India’s capital markets while fostering financial inclusion and technological advancement.

GetMyIndia.com  RaysVeda.com  GetMyStartup.com  LawCanal.com  ABHAYRAY.COM  ZinCob.com