Metropolitan Stock Exchange of India (MSEI) today said it reduced annual losses and boosted volumes in the currency derivatives market, as part of its new turnaround strategy.
It further said the exchange would achieve EBIDTA break even by the next financial year, MSEI, formerly known as MCX Stock Exchange (MCX-SX), said in a statement.
The exchange is implementing its turnaround business plan, which focuses on the alternate investment products market in the country.
As part of the plan, the bourse has started attracting the listed companies from regional stock exchanges.
In the last few months, over 130 companies have migrated from regional stock exchanges to MSEI and another 40 applications are being processed. It has a listing fee of Rs 5 lakhs for such companies and listing of these 200 companies from regional stock exchanges would fetch Rs 10 crore.
“MSEI, third national stock exchange of India, has reduced its annual losses by 33 per cent last fiscal. We have reduced our last year losses primarily by focusing on cost reduction.
“Going forward, focus is on topline growth. In the early stages of our strategy implementation, we have gained nearly 400 basis points in currency futures market share in couple of months,” MSEI chief financial officer and Head Strategy Abhijit Chakraborty said.
Another major development at the exchange includes attracting bulk and block deals on its equity segment.
“…we have planned a strategy to turnaround the exchange. We will focus on getting liquidity and developing the currency derivatives segment, Interest Rate Derivatives, ETFs and single stock (bulk/block deals) market, in the first phase of our revival strategy,” MSEI Managing Director and Chief Executive Udai Kumar said.
“Over the next few quarters, the exchange will strategically approach increasing its market share in these segments. Our approach in all these segments will be based on product and process innovation, which fills the gaps in the market and meets its needs,” Chakraborty said.
The exchange has arrested the decline in volumes of currency futures and also extended the trading timings for currency markets. Now, it has raised volume from 3.7 per cent to 7.2 per cent over the last few months.
“We need to raise capital to fund the growth strategy of the exchange and also to meet capitalisation needs of our subsidiary. We are in active talks with leading investors and are confident that we shall be able to close our fund raising in a quarter’s time,” he added.