MSEI Aims to Improve Market Liquidity and Price Discovery

09 January 2026

Metropolitan Stock Exchange of India (MSEI) has introduced a Liquidity Enhancement Scheme (LES) to improve trading liquidity, market depth, and price discovery in equity shares traded on the exchange .

What the Exchange is Doing
Under this scheme, MSE will appoint designated market makers who will continuously provide buy and sell quotes in selected equity stocks, helping ensure smoother trading and narrower bid–ask spreads.

Key Features of the Scheme

• Mandatory two-way quotes for most of the trading day
• Defined order-book depth across multiple price levels
• Controlled bid–ask spreads to improve pricing efficiency
• Monthly incentives of up to ₹40 lakh for market makers meeting obligations
• Waiver of exchange transaction charges for trades under the scheme

Eligible Securities
The scheme includes a broad list of actively tracked stocks, and all new mainboard IPOs listed on MSEI will be added automatically.

Scheme Duration
The LES will remain in force until June 30, 2026, subject to review or modification by the exchange.

Why This Matters for Investors
The initiative is expected to improve liquidity, reduce trading costs, and support more efficient price discovery, making trading in MSEI-listed equities more seamless and transparent.