MSEI Eyes Cash Market Comeback After New Expiry Day Norms — Profit Exclusive

The Metropolitan Stock Exchange of India is charting a new strategy after the Securities and Exchange Board of India’s new expiry day norms, by venturing into the cash market segment, as per people in the know. The exchange already has all the right regulatory approvals in place and the move is expected to materialise in the next two to three months, the people said. Notably, after a fresh approval from the markets regulator, the Metropolitan Stock Exchange of India is likely to use Tuesday as its expiry day. This means that the exchange will be sharing its expiry with the NSE.
However, this remains in contravention of its earlier plans to use Friday as its expiry day, in furtherance of its plans to develop its standing in equity derivatives.
In the last meeting of the SEBI-constituted committee on derivatives market reform, the Metropolitan Stock Exchange and the National Commodity and Derivatives Exchange voiced dissent against the proposal to restrict weekly derivative contract expiries to two days, NDTV Profit had reported. Since then, people in the know mentioned that NCDEX has decided to sit out the race for an expiry day.

The decision to move into cash markets, as per the people quoted above, comes from the need to hold some value for its investors after the new expiry day norms. It was reported in December 2024 that the exchange was preparing for another attempt at revival, this time with backing from Groww's parent company and Zerodha's Rainmatter. According to disclosures made by the exchange, MSEI aimed to raise Rs 238 crore through that fundraise.

As per the experts that Profit had spoken to at the time, new investors found the exchange more lucrative as the exchange plans to relaunch its flagship index, and start futures and options contracts. This was also because the industry experts at the time believed that the revival of the exchange would provide traders and investors with a third expiry day each week, on Friday. The exchange has close to 2,000 companies available for trading on its platform, including close to 265 listed firms.