MSEI: An update - Corporate Action: Right Issue

Youngest multi asset stock exchange, Metropolitian Stock Exchange of India [MSEI], is a full-service National level Stock Exchange including clearing corporation services with license that offers an electronic, transparent and hi-tech platform to operate in Equity, Equity Derivatives, Currency Derivatives, Debt and SME Platform. MSEI is one of the three stock exchanges having nationwide trading terminals in India with a comprehensive focus, located in Mumbai, the financial capital of the country.

In 2017, MSEI raised capital and invested about INR195.35 crores in its subsidiary, MCCIL, thus enhancing the net worth of MCCIL from INR100 crore to INR 300 crore.

Another milestone for the company in 2017 was collaboration with GMEX Group (a financial and tech solutions) from London

Products:

MSEI is continuously working on different processes to enhance it's current product line and taking initiatives to design new products to keep up with the times of global standards. MSEI has a well differentiated market and product strategy to carve a niche.

• Currency Derivatives Segment (USDINR, EURINR, GBPINR and JPYINR and Currency Options contracts on USD-INR spot rate)

• Trading in Equity Cash segment and Futures & Options Segment, Debt Segment and Interest Rate Futures.

• MSEI is recalibrating its flagship indices (SX40 and SXBank) to enhance its acceptability and plans to actively promote trading of derivatives contracts based on these indices.

Approval Pending:

MSEI has submitted applications to SEBI for introduction of following products and awaiting approvals

• Exchange Traded Cross Currency Derivatives contracts on EURUSD, GBP-USD and USD-JPY currency pairs;

• Exchange Traded Monthly Option contracts on EUR-lNR, GBP-INR and JPY-lNR currency pairs;

• Exchange Traded Weekly Options contracts on USD-INR currency pair.

Leveraging on a sound capital base, state of art risk management & clearing and settlement systems and long track record of default free settlements, MCCIL (subsidiary of MSEI) is in advanced stage of expanding its business by providing clearing and settlement services to other SEBI recognised stock exchanges.

Change in Shareholders:

• Rakesh Jhunjhunwala continue to reduce it's stake from both listed (Titan) as well as unlisted space (MSEI) in 2018.

• Siddharth Balachandran, the India-born founder of Dubai’s Buimerc Corporation FZE, picked up a 5% stake in MSEI

• Union Bank of India picked up 2.27% stake.

The management will utilize the proceeds raised from issue of Equity Shares for business growth with a target of achieving financial breakeven by end of Financial Year 2019 and turn profitable from Financial Year 2020 onwards.

Company has to prove it's standing in variety of ways including but not limited to costing, quality & speed of trade execution, liquidity, ease of use of trading systems and above all the reputation plays a key role in its survival. Company is targeting to acquire a market share in focused segments. Financial planning along with new product launches, brand building, vendor management, effective management system are the key company’s focused factors to turn it’s journey of scaling up business towards turnaround and growth.

With an award of “Emerging Currency Exchange of India” during the Annual Convention on Capital Market Vision-2020 organized by the PHD Chamber of Commerce and Industry (PHDCCI) in September 2017, will serve as the gateway for growth and will stimulate expansion of overall business and visibility of the Exchange.

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