Metropolitan Stock Exchange of India Ltd. Limited (MSEI) is recognised by Securities and Exchange Board of India (SEBI) under Section 4 of Securities Contracts (Regulation) Act, 1956. The Exchange was notified a “recognised stock exchange” under Section 2(39) of the Companies Act, 1956 by Ministry of Corporate Affairs, Govt. of India, on December 21, 2012. Shareholders of the Exchange include India’s top public sector banks, private sector banks and domestic financial institutions who, together hold over 88% stake in the Exchange. MSEI is subjected to CAG Audit and has an independent professional management.
In line with global best practices and regulatory requirements, clearing and settlement of trades done on the Exchange are conducted through a separate clearing corporation − MCX-SX Clearing Corporation Ltd.
MSEI 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. MSEI commenced operations in the Currency Derivatives (CD) Segment on October 7, 2008, under the regulatory framework of SEBI and Reserve Bank of India (RBI). MSEI launched Capital Market Segment, Futures and Options Segment and flagship index ‘SX40’ on February 9, 2013 and commenced trading from February 11, 2013.
Trading in the ‘SX40’ index derivatives began from May 15, 2013. ‘SX40’, is a free-float based index consisting of 40 large-cap, liquid stocks representing diverse sectors of the economy. Its base value is 10,000 and base date is March 31, 2010. The index is designed to be a performance benchmark and facilitate creation of efficient investment and risk management instruments.
The Debt Market Segment of MSEI, was launched on June 7, 2013, and trading commenced from June 10, 2013. The Exchange started live trading in cash-settled Interest Rate Futures (IRF), on 10-year Government of India security, in its Currency Derivative Segment from January 20, 2014. The product provides a better option to hedge against volatile interest rates.
Commitment to Financial Literacy and Inclusion
‘Information, Innovation, Education and Research’ are the four cornerstones of the unique market development philosophy adopted by MSEI and supports its mission of Financial-literacy-for-Financial InclusionTM, as is envisaged by the Government of India.
As part of this mission, MSEI conducts large-scale investor education and awareness programmes, averaging at least programme one per working day, across the length and breadth of the country. The Exchange has collaborated with academic institutions of repute, media, trade bodies, international organisations and industry experts for organising literacy and awareness drives.
MSEI has come out with a ‘Manifesto of Change’, which is a roadmap of what the Exchange intends to achieve in terms of driving market development and inclusive growth over the next 10 years.