The Rs 856-crore claim by Metropolitan Stock Exchange of India (MSEI) against National Stock Exchange (NSE) is scheduled for hearing by the National Company Law Appellate Tribunal (NCLAT) on 10 October 2017. MSEI had dragged NSE to the Competition Commission of India (CCI) citing monopolistic practices. The competition watchdog held NSE guilty and asked it to compensate MSEI.
Metropolitan Stock Exchange of India (MSEI), India’s new stock exchange, is recognised by Securities & Exchange Board of India. It is India’s third functional and recognised stock exchange after BSE and NSE. There is huge demand for shares of MSEI due to strong listing of BSE and upcoming IPO of NSE. A clutch of financial institutions now own more than 34% of MSEI, as do investors including Rakesh Jhunjhunwala, Radhakishan Damani and Nemish Shah.
In 2008, both MSEI and NSE launched currency future contracts almost simultaneously. NSE priced the transaction charges on these contracts at zero and given NSE’s dominant position, MSEI was left with no choice but to adopt zero pricing as well.
This made a significant and material dent in the financial position of MSEI, which filed a complaint with CCI alleging predatory pricing (waiver of transaction fees, data-feed fees and admission fees) wherein CCI found NSE guilty and imposed a fine of Rs 55.5 crore. NSE filed an appeal with the Competition Appellate Tribunal (COMPAT), which too found NSE guilty. NSE then moved the Supreme Court and its appeal is still pending.
According to the process, the exchange has filed an application for award of compensation against NSE for Rs 856 crore before COMPAT, pending the appeal. Now, as COMPAT ceased to exist (from May 26), all pending matters before COMPAT stand transferred to the NCLAT.
Udai Kumar, MD & CEO of MSEI,said, “MSEI started out as a fast-growing exchange with immense potential, when it was deeply impacted by the financial burden imposed by NSE’s predatory pricing. Speedy disposal of this matter is the need of the hour. “It will encourage transparency and compliance with existing competition laws and practices across the spectrum and also dis-incentivise anti-competitive practises and misuse of dominant position.”
The Metropolitan Stock Exchange of India (MSEI) plans to woo brokerages to execute large stock trades on its venue. The exchange is also developing short-term debt instruments to help mutual funds and insurance companies hedge their portfolios. Products launches in currency, interest rate futures and corporate bonds are also planned.
Backed by billionaires Rakesh Jhunjhunwala and Radhakishan Damani, MSEI aims to wade into the block deals segment, which is worth as much as Rs 5 trillion ($78 billion). India’s regulator defines a block as a single trade having at least 500,000 shares or a minimum value of Rs 5 crore. Money managers like dealing in large sizes because it ensures transactions are done before the market can hear about them and react by raising or lowering prices.
We are telling institutional investors to come to our platform—there will be no slippages or price impact, said Kumar, who was named chief executive officer last year to turn around the bourse. The MSEI is in talks with half a dozen large investment banks to bring in such deals, he said.
The MSEI, which has been making losses, expects to return to profitability by March 2020. We can lead in areas where the BSE and NSE have limited play, Kumar said.
A clutch of financial institutions now own more than 34% of MSEI, as do investors including Jhunjhunwala, Damani and Nemish Shah.
The MSEI got 250 companies to list exclusively on its venue—most of whom migrated from the 15 regional bourses the market regulator shut down three years ago—and slashed fees and transaction costs to levels it claims are the lowest in the country.
Metropolitan Stock Exchange of India (MSEI), India’s new stock exchange, is recognised by Securities & Exchange Board of India. It is India’s third functional and recognised stock exchange after BSE and NSE. There is huge demand for shares of MSEI due to strong listing of BSE and upcoming IPO of NSE.
The Metropolitan Stock Exchange of India (MSEI) plans to launch an initial public offering (IPO) 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 12 July 2017. 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.
MSEI 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. India’s third national-level stock exchange has been operational since 31 December 2012. More than 1,500 stocks are traded on the MSEI currently.
MSEI, India’s new stock exchange, is recognised by Securities & Exchange Board of India. It is India’s third functional and recognised stock exchange after BSE and NSE. There is huge demand for shares of MSEI due to strong listing of BSE and upcoming IPO of NSE. A clutch of financial institutions now own more than 34% of MSEI, as do investors including Rakesh Jhunjhunwala, Radhakishan Damani and Nemish Shah.
Leading securities depository Central Depository Services (CDSL) has received clearance from the Securities and Exchange Board of India (Sebi) for an initial public offering (IPO). Its public issue comprises an offer for sale by shareholders including BSE, State Bank of India, Bank of Baroda and Calcutta Stock Exchange.
Going by the draft papers, little over 3.5 crore shares would be offloaded by CDSL through the offer for sale (OFS) route and out of the total, 7 lakh shares would be reserved for the employees. Four shareholders — BSE, SBI, Bank of Baroda and the Calcutta Stock Exchange — would be selling stakes in CDSL through the initial share sale. The IPO is estimated to be worth Rs 450 crore ($67 million), valuing CDSL around Rs 1500 crore.
Shares of Asia’s oldest bourse, BSE saw stellar debut on Friday, 3 February 2017. The stock settled at Rs 1,070.55 on the NSE, a premium of 32.82% compared with initial public offer price of Rs 806.
Shares of BSE made its debut at Rs 1,085 on NSE. The stock had hit a high of Rs 1,200 and a low of Rs 1,065.10 in intraday trade. The initial public offer (IPO) of BSE had received strong response from investors. The IPO was oversubscribed 51.22 times.
The recent market buoyancy has triggered an IPO boom. Companies with good fundamentals are seeing huge oversubscription leaving investors with nil or low allotment. This is very annoying as there is a loss of opportunity to make profit in form of listing gains.
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