MSE gets Sebi nod for electronic book building mechanism for online bidding

MSE was set up by Jignesh Shah-led Financial Technologies (India) Ltd (FTIL) and it commenced operations in the currency derivatives segment in October 2008

Metropolitan Exchange of India (MSE), formerly MCX-SX, said it has received approval from markets regulator Sebi to launch electronic book building mechanism to facilitate online bidding for private placement of debt securities.

The exchange is also expected to roll out products for the equity segment during the first quarter of fiscal 2018-19.

"As a part of our business strategy, we have undertaken several initiatives to introduce new offerings to gain traction. While many ideas are on the drawing board, we have a decent pipeline of roll-outs at advanced stages," MSE managing director and CEO Udai Kumar told PTI.

"EBP (Electronic Book Building Provider) has received approval from Sebi this mechanism is available on our exchange platform for issuance of debt instruments by corporates. With this the exchange will be able to attract new debt issues and their subsequent trading," he added.

Noting that exchange focus remains on equity bulk/block deals, Kumar said "we are working on some effective roll-outs that will help revive our equity segment as well."

MSE, earlier known as MCX-SX, was set up by Jignesh Shah-led Financial Technologies (India) Ltd (FTIL) and it commenced operations in the 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 National Spot Exchange Limited (NSEL), which was also promoted by Jignesh Shah.

MCX-SX was renamed as MSE as part of turnaround strategy to give the exchange a new identity, and disassociate from its original promoters and help it shift to a high growth phase.

"Business revamp activity is in full force. Our talent strategy team under the guidance of the management team and the board has been instrumental in redefining roles to ensure alignment with changing business needs, macros and new-age consumer thinking," Kumar said.

The exchange has recently appointed a few top executives including a new CFO, head of listing as well as communications.