The Metropolitan Stock Exchange (MSE) has refuted a Reuters report that the market regulator SEBI has stopped the National Commodity and Derivatives Exchange (NCDEX) and Metropolitan Stock Exchange (MSE) from offering equity derivatives trading.
MSE in a separate release refuted the news agency’s claim and issued a claim saying that, “MSE is a fully operational, SEBI-recognized stock exchange with a robust technology infrastructure that fully meets all standards.”
Referring to the Reuters report, MSE stated that “Your claims of SEBI imposing a gap or halting equity derivatives launches stem from unsubstantiated speculation by unnamed sources. We clarify that MSE, a recognized Stock Exchange by SEBI, is under no restriction from offering of any approved products including equity derivatives. We remain devoted to advancing cutting-edge systems for the benefit of all market participants.”
FinancialExpress.com has not been able to independently verify this report by Reuters. We are awaiting comments from SEBI. As per Reuters, SEBI and NCDEX did not respond to requests for comments from Reuters.
MSE claims to meet all required tech standards
MSE in its statement added that that it does meet required tech standards.” Further, our press release of January 27, 2026, transparently details our proactive initiatives—like appointing market makers to bolster liquidity and depth in the Equity Segment—reflecting our unwavering commitment to sustainable, inclusive growth.”
It also added that the exchange meets all the requisite technology standards, adding that the headline of the report published by Reuters was misleading.”
SEBI cautious amid surge in derivatives activity
According to Reuters, SEBI’s decision comes amid continued caution about derivative market trading. The premiums are now roughly twice the size of the cash market, compared with 2-3% in major global economies, as per Reuters.
Soaring derivatives trading in India
In the Union Budget 2026, Finance Minister Nirmala Sitharaman had proposed a 150% hike in the Securities Transaction Tax (STT) on F&O to deter speculative trade.
Under the new rates, STT on futures has been increased to 0.05% from 0.02%, while STT on options has been raised to 0.15% of the option premium, up from earlier levels. Where options are exercised, the levy has also been nudged higher.
While the government tries to control derivative trading, India’s NSE remains the most active derivatives exchange, accounting for more than 70% of index options contract trading volumes worldwide.
According to SEBI, about 90% of retail traders incur losses in the F&O segment.
(With inputs from news agency Reuters)