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News Topical, Digital Desk : MSE Exchange News: Competition is once again intensifying in the Indian stock market. Preparations are in the final stages for the much-anticipated return of the Metropolitan Stock Exchange (MSE) to challenge the dominance of the country's major exchanges, the BSE and NSE. According to sources, trading on the MSE could begin within the next two weeks.
To increase liquidity in the market, MSE has planned a comprehensive liquidity enhancement scheme. Under this scheme, the exchange will appoint market makers to provide liquidity support for approximately 130 stocks. Experts believe that the initial focus will be on the cash segment to gain the trust of investors and traders. MSE has also strengthened its position on the funding front.
What's the information so far? The exchange has raised a total of ₹1,240 crore in two tranches in December 2024 and August 2025. Major brokerage and fintech companies Groww and Zerodha also participated in this funding round, boosting market confidence in MSE's strategy. However, experts believe that breaking the NSE-BSE duopoly will not be easy. Both exchanges have strong market shares. In the cash segment, NSE holds approximately 90-92%, while BSE holds 8-10%. In stock futures and options (F&O), NSE dominates with approximately 95%, while BSE holds around 5%. In index F&O, NSE holds approximately 80%, and BSE holds approximately 20%.
Rapidly increasing volumes is difficult. Furthermore, achieving scale in the derivatives segment could be challenging for MSE. Under market regulator SEBI's rule, which allows only two expiries in any segment, it is considered difficult for the new exchange to rapidly increase volumes. For now, investors are watching to see how effectively MSE, with its liquidity strategy and technology, establishes itself in the Indian stock market. If trading commences as planned, the coming months could see both competition and choice increase in the market.
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