Metropolitan Stock Exchange of India (MSE) has mobilised Rs 112 crore through a rights issue and is awaiting regulator Sebi's approval for launching new products, a top company official said.
Metropolitan Stock Exchange of India (MSE) has mobilised Rs 112 crore through a rights issue and is awaiting regulator Sebi’s approval for launching new products, a top company official said. The exchange, which was targeting to raise Rs 207 crore from the rights issue, will allot the unsubscribed portion through board approval. Proceeds from the issue would be used towards capitalisation of MSE’s subsidiary Metropolitan Clearing Corporation of India as per regulatory requirements. “MSE launched rights issue of Rs 207 crore on September 16 which closed on September 30. During this time, MSE was successful in raising Rs 112 crore,” MSE Managing Director and CEO Udai Kumar told PTI. “Unsubscribed portion will be placed and allotted through board approval,” he added.
Noting that the bourse is adequately funded for business requirements, Kumar said that “if the exchange receives oversubscription in the process of placing the unsubscribed portion, it has the option to retain it”. He added that MSE is awaiting regulator Sebi’s approval for launching new products.
“Our application with Sebi for new products is being processed and the approval may take about 1-2 months’ time,” Kumar said. The exchange is working towards widening its market presence and is planning to launch new products in currency derivatives, interest rate futures and equities segments. MSE has laid out a business revival strategy which includes re-positioning the brand and developing trust and credibility through branding exercises.
MSE, earlier known as MCX-SX, was set up by Jignesh Shah-led Financial Technologies (India) Ltd (FTIL). It commenced operations in currency derivatives segment in October 2008. It began operating as a full-fledged bourse with launch of equity trading in February 2013. While MCX-SX had witnessed a strong performance in the initial period of its launch, the turnover saw a sharp plunge amid a payment crisis at the National Spot Exchange Limited (NSEL), which was also promoted by Jignesh Shah. MCX-SX was renamed as MSE as part of a turnaround strategy to give the exchange a new identity, disassociate from its original promoters and shift to a high growth phase.