Metropolitan Stock Exchange Eyes Profitability, IPO In Next Two Years
The loss-making exchange says it has enough liquidity to fund its business over the next two years.
The Metropolitan Stock Exchange of India (MSEI) wants to launch an initial public offering in the next two years, following in the footsteps of larger peers, the Bombay Stock Exchange and National Stock Exchange.
The exchange is looking to turn profitable in the next two years, and it plans to go public at the end of this turnaround period, said the chief operating officer Abhijit Chakraborty during an event on Tuesday.
We are not only adequately capitalised, we also have enough liquidity to fund our business for the next two years.Abhijit Chakraborty, COO-Strategy and Business Development, MSEI
The exchange, formerly known as MCX-SX, currently has a net worth of around Rs 160 crore, cash liquidity of about Rs 60 crore and operating costs at just below Rs 30 crore, said Chakraborty.
It plans to launch two new derivative products in the currency segment, one new interest rate futures (IRF) product and two new equity indices linked to derivative contracts by next year.
Trading Hours Extension On Hold
The MSEI has put on hold plans to extend trading hours till 5 pm after discussions with the Securities and Exchange Board of India (SEBI), Chakraborty said. The exchange had said on July 4 that it will extend the closing time of trading hours on its equity capital market segment to 5 pm from 3.30 pm earlier.
It is now working to develop a mechanism to avoid malpractices during this period when other exchanges remain shut, Chakraborty said.
India’s third national-level stock exchange has been operational since December 31, 2012. More than 1,500 stocks are traded on the MSEI currently.