Metropolitan Stock Exchange Eyes BSE and NSE as New Rival
As liquidity continues to be a challenge for new stock exchange, MSE is preparing a detailed plan to address this issue. Under this initiative, the exchange plans to appoint market makers who will actively support trading activity in nearly 130 stocks. The aim is to improve liquidity, ensure smoother transactions, and create a more stable trading environment for investors.
Metropolitan Stock Exchange Set to Launch Operations in India
| Parameter | Details |
|---|---|
| Total Funding Raised | ₹1,240.00 crore |
| Funding Tranches | Two separate rounds |
| Timeline | December 2024 and August 2025 |
After BSE and NSE, India is soon set to welcome a new stock exchange. The Metropolitan Stock Exchange (MSE) is gearing up to start its operations, with trading expected to go live within the next two weeks, according to sources quoted by CNBC-Awaaz.
To address liquidity challenges, MSE has outlined a structured liquidity enhancement plan. As part of this effort, the exchange will appoint market makers to support trading activity in around 130 stocks, helping ensure smoother and more active participation.
MSE has also strengthened its financial base by raising ₹1,240 crore in two phases, with some of the leading brokerage firms participating in the funding.
Despite the development, analysts remain cautious about the possibility of breaking the long-standing dominance of NSE and BSE, given their strong hold on the market.
Market Dominance of NSE and BSE
Data highlights NSE’s strong dominance across market segments. In the cash market, NSE accounts for roughly 90–92% of the share, while BSE holds about 8–10%. In the stock futures and options segment, NSE’s share is even higher at around 95%, with BSE at nearly 5%. In index F&O, NSE leads with close to 80% share, while BSE makes up the remaining 20%.
SEBI’s New Rules and Their Impact
In 2025, market regulator SEBI introduced new rules that allow only two weekly equity derivatives expiries in each segment. This change could make it more challenging for a new stock exchange like MSE, as it may increase competition and limit liquidity in the early stages.
Lessons from the Past
MSE had earlier rolled out a Liquidity Enhancement Scheme (LES) in 2013 for its equity and equity derivatives segments. As part of this initiative, the exchange appointed three market makers for futures contracts across 50 liquid stocks. The objective was to boost participation by encouraging market makers and traders to place and maintain passive orders, helping improve overall market activity.