MSEI Unlisted Share

Company Overview:

Metropolitan Stock Exchange of India Limited (MSEIL) is an electronic platform for trading in capital market, futures and options; currency derivatives and debt market segments. The company’s products include equities, currency derivatives, interest rate derivatives and initial public offerings. MSEIL has also received in-principle approval from SEBI for operating SME trading platform. In line with global best practices and regulatory requirements, clearing and settlement of trades done on the Exchange were initially conducted through its subsidiary clearing corporation − Metropolitan Clearing Corporation of India Ltd. Post implementation of the interoperability framework from June 03, 2019, the clearing and settlement of trades can be conducted through any of the National Clearing Corporations i.e. Metropolitan Clearing Corporation (MCCIL), Indian Clearing Corporation (ICCL) and National Securities Clearing Corporation (NSCCL). 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. MSE commenced operations in the Currency Derivatives (CD) Segment on October 7, 2008, under the regulatory framework of SEBI and Reserve Bank of India (RBI). The Company is a full service National level Stock Exchange with license to operate in Equity, Equity Derivatives, Debt Segment and Currency Derivatives Segment. The Exchange has live trading platform in all segments. The Exchange has temporarily suspended trading in its debt segment from the close of business hours of September 18, 2020. Metropolitan Clearing Corporation of India Limited (MCCIL) which is a Clearing Corporation and one of the subsidiaries of the Exchange now clears and settles trades via Interoperability Mechanism through MCCIL, Indian Clearing Corporation Limited and NSE Clearing Limited. The current ownership of the Exchange is well diversified between corporates, banks and individuals. The Exchange is required to seek annual renewal of recognition from SEBI. The Exchange has received a renewal from SEBI, for one year.

MSE 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-caps, 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 MSE 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 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.

Mission & Vision:

'Information, Innovation, Education and Research' are the four cornerstones of the unique market development philosophy adopted by MSE and supports its mission of Financial-literacy-for-Financial InclusionTM, as is envisaged by the Government of India. As part of this mission, MSE conducts large-scale investor education and awareness programmes.

Several services that are offered by MSEI:

1. The stock exchange offers an electronic, transparent, and hi-tech platform for trading in several segments like the capital market, futures & options, currency derivatives, and debt markets.

2. The exchange also provides an SME trading platform.

3. It commenced its Currency Derivatives (CD) segment operations on October 07, 2008, under the regulatory framework of the Reserve Bank of India (RBI) and SEBI.

4. The exchange also launched its capital market segment, futures, and options segment, and flagship index “SX40” on February 09, 2013, and started trading on February 11, 2013.

Subsidiaries of the Company:

The company has two subsidiaries:

1. (MCCIL) Metropolitan Clearing Corporation of India Limited:

This subsidiary was set up with the intention of clearing and settling all the trades on the exchange.

It has also set up an agreement with the Indian Commodity Exchange Limited (ICEX) to offer clearing and settlement services to MSEI for all the trades done on their existing commodities and derivative segments.

Metropolitan stock exchange holds an 86.94% stake in MCCIL.

2. MCX-SX KRA:

This is a wholly-owned subsidiary of the company to completely overtake the business of KYC Registration Agencies and allied activities, subject to registration with SEBI under the SEBI(KYC (Know Your Customer) Registration Agency) Regulations, 2011.

MSEI holds a 100% stake in MCX-SX KRA.

Business Segments:

1. Currency Futures & Options:

Available for trading in USD/INR, GBP/INR, EUR/INR and JPY/INR, Contracts along with cross currency pairs of EUR/USD, USD/JPY, GBP/USD.

2. Interest Rate Futures:

Futures contracts on 6 GOI Bonds with maturity buckets of 6 years, 10 years and 13 years are made available.

3. Equity Segment:

There are total 1348 companies are available for trading.

4. Equity Derivatives:

Index Futures and Index Options are available for trading on MSE Index SX40 and also F&O trading in the Exchange is available on 191 Stocks.

5. ETFs:

Currently 49 ETF’s available for trading on MSE.

6. Gold Bond:

Currently 42 Sovereign Gold Bonds (SGBs) are available on MSE.

Competitive Strength:

• MSE offers a transparent, Hi-tech platform for trading in Capital Market, Futures & Options (F&O), Interest Rate Derivatives, Currency Derivatives, ETFs and Debt Market, and continuously working to do improve the technological operations.

• The exchange is also working to gain traction in the equity segment, along with building state-of-the-art Mutual Fund and SME platform to deepen the relationship with its members and clients, by offering integrated solutions to their trading needs.

Key Strength of MSEIL:

1. Use of High End Technology:

The IT infrastructure at the Exchange has been designed with performance, reliability, redundancy and security as the key parameters. The Exchange has got a robust Trading System running on High Availability and Fault Tolerant Infrastructure which includes Fault Tolerant Servers, routers, firewalls with Intrusion Prevention and Detection System. The robust technology infrastructure enables the Exchange to operate efficiently and also facilitates fast order routing, immediate trade execution, trade reporting, market data dissemination, risk management and market surveillance. MSE’s trading system has gained greater acceptance among the traders and investors, with its user friendly functionalities coupled with sound architecture to cater to the Exchange system requirements. The systems and processes of the Exchange are designed to safeguard market integrity and to enhance transparency in operations. Since the Exchange has implemented interoperability framework, the trades executed at MSE can be settled at designated Clearing Corporations. The Surveillance system of the Exchange has capability to generate alerts, with the user configurable thresholds, to trigger any unusual trading trends and has all capacity to ensure that the security watch systems and reports/investigations are efficiently done in line with the norms specified by SEBI.

Further, the Exchange is committed to ensure continuous improvement in Member Satisfaction and to serve its Members with a better technology in the time to come. The Exchange is committed to bring world class technology. The online trading system of the Exchange is accessible to its members through any location across the length and breadth of the country through multiple modes of connectivity such as Multi-Protocol Label Switching (MPLS), colocation and Internet. The IT components are hosted in a state-of-art data centre that is designed to support mission critical operations. The data centre and all its components are monitored 24 x 7.

MSE maintains a Disaster Recovery Site (DRS) at a different seismic zone and a Near Site near its Primary Site. As per SEBI directive and industry best practices, MSE is committed to achieve minimal data loss (near to zero data loss) by implementing state-of-the-art DR solution. Data is being replicated on a real-time basis from Primary Site in Mumbai to the Near Site as well as DR Site. Data synchronization between Primary Site and Near Site is synchronous & between Primary Site to DR site is asynchronous. The Recovery Time Objective (RTO) and Recovery Point Objective (RPO) of the Exchange are 45 minutes and 15 minutes respectively for all critical systems like Trading, Surveillance, Risk Management etc. Periodic mock tests and half yearly unannounced live trading from DR site for two consecutive days are done to ensure proper functioning of DR systems.

The Exchange provides Real-time price information to interested parties through “Data feed” service of the Exchange. The Exchange also provides the delayed data feed free to cost to the data feed vendors. Data feed contains information relating to Products traded on the Exchange platform.

Promoters and ShareHolding Pattern:

Peer Comparison:

Financials:

Source: Company Filing Form AOC-4

Source: Company Filing Form AOC-4

Source: Company Filing Form AOC-4

Valuations:

During the year, Total Revenue increased to Rs. 1,881 Lakhs in FY 2020-21 compared to Rs. 1,575 Lakhs in FY 2019-20. Operating Revenue increased to Rs. 585 Lakhs in FY 2020-21 compared to Rs. 525 Lakhs in FY 2019-20. Transaction fees income increased to Rs. 158 Lakhs in FY 2020-21 compared to Rs. 68 Lakhs in FY 2019-20. Listing processing fees increased to Rs. 51 Lakhs in FY 2020-21 compared to Rs. 22 Lakhs in FY 2019-20. The Listing Fees income increased to Rs. 174 Lakhs in FY 2020-21 compared to Rs. 172 Lakhs in FY 2019-20 and Other income increased to Rs. 1,296 Lakhs in FY.2020-21 compared to Rs. 1,050 Lakhs in FY 2019-20.

Total Expenses has decreased to Rs. 4,311 Lakhs in FY 2020-21 as Compared to Rs. 4,910 Lakhs in FY 2019-20. The operating expenses decreased to Rs. 951 Lakhs in FY 2020-21 as compared to Rs. 1,072 Lakhs in FY 2019-20, Employee benefit expenses decreased to Rs. 1,677 in FY 2020-21 as compared to Rs. 1,699 in FY 2019-20, Advertising expenses has increased to Rs. 59 Lakhs in FY 2020-21 as compared to Rs. 51 Lakhs in FY 2019-20, The Finance cost has decreased to Rs. 54 Lakhs in FY 2020-21 as compared to Rs. 139 Lakhs for FY 2019-20. Administration and other expenses decreased to Rs. 745 Lakhs in FY 2020-21 as compared to Rs. 908 Lakhs in FY 2019-20. Depreciation and amortization expenses decreased to Rs. 825 Lakhs in FY 2020-21 as compared to 1,041 Lakhs in FY 2019-20.

News:

1. Prof. Rao appointed as chairperson at MSE.
   https://www.msei.in/SX-Content/Press-Release/2022/June/PR-ENGLISH-22-JUN-2022--PROF.-RAO-APPOINTED-AS-CHAIRPERSON-AT-MSE.pdf

2. MSE first to get SEBI nod to launch weekly IRF Contracts.
   https://www.moneycontrol.com/news/business/markets/mse-first-to-get-sebi-nod-to-launch-weekly-irf-contracts-4882371.html