Madras Stock Exchange


The Madras Stock Exchange was a stock exchange in Chennai, India. The now defunct MSE was the fourth stock exchange to be established in the country and the first in South India. It had a turnover of 3,090 crore, but was a fraction of the turnover generated by the Bombay Stock Exchange and National Stock Exchange of India. The turnover of the stock exchange was 19,907 Crore as of the financial year 2012.

History

In 1996, the MSE was fully computerised and online trading became operational, as the MSE was connected to 120 broking offices in and around Chennai through wide area networking. On 14 May 2015, SEBI permitted Madras stock exchange to exit.

Functions

The MSE had about 120 live members and 1,785 companies listed. The exchange followed the Rolling Settlement system, as per the January 2000 SEBI guidelines and a proactive Grievance Cell is operational. By this system, investors could log in their complaints, for which a number was be given for further reference, through which investors could keep track of the action taken by the exchange as regards their complaint.
A subsidiary company - MSE Financial Services Ltd, had been established. A member of the Bombay Stock Exchange, MSE Financial Services did help to create greater broker and investor flexibility through multi-market access. The members were able to trade in both BSE and MSE. This was followed up with National Stock Exchange membership.
Trading on the exchange took place from 10.00 am to 3.30 pm.

Merging

As per June 2012 notification from the Securities and Exchange Board of India, whereby individual stock exchanges should maintain a minimum liquid net worth of 1,000 million and exchanges that do not comply with this requirement should close down their operations by June 2015, the Bangalore Stock Exchange decided to merge with the Madras Stock Exchange. The combined entity became the single largest regional exchange in the country with over 1,000 local companies listed exclusively on it. BgSE and MSE together had a liquid net worth of around 500 million while another 500 million will be raised by liquidating certain idle assets of these exchanges.