Metropolitan Stock Exchange: BSE, NSE to soon have a new rival, reports CNBC-Awaaz

MSE

• Metropolitan Stock Exchange set to start trading within two weeks
• MSE plans liquidity support for 130 stocks via market makers
• Breaking NSE-BSE duopoly may be tough due to their strong market shares

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After BSE and NSE, India is all set to see another stock exchange being added to the markets. The Metropolitan Stock Exchange (MSE) is set to begin its operations and trading is expected to begin on the new exchange within the next two weeks, CNBC-Awaaz reported citing sources.

As liquidity remains a concern around a new stock exchange, MSE has planned a comprehensive liquidity enhancement scheme under which it will appoint market makers to provide liquidity support for approximately 130 stocks, the channel added.

MSE has raised Rs 1,240 crore in two tranches in December 2024 and August 2025, which saw participation from major brokerage houses Groww and Zerodha. However, analysts said that  breaking the NSE-BSE duopoly may not be easy as they hold strong market shares, the channel added.

According to data cited by the report, NSE holds approximately 90-92 percent share, while BSE holds 8-10 percent share in the cash segment. In stock futures and options (F&O), NSE holds around 95 percent share, while BSE holds around 5 percent share. In index F&O, NSE holds nearly 80 percent share, and BSE holds approximately 20 percent share.

Moneycontrol couldn't independently verify the report.

Notably, market regulator SEBI in 2025 introduced new rules to allow only two weekly equity derivatives expiries in any segment during the week. Currently, NSE has Nifty 50 expiry on Tuesdays, while BSE has Sensex expiry on Thursdays.

A new stock exchange on the market may face competition and the risk of low liquidity as a result of this.

Earlier, MSE had introduced a Liquidity Enhancement Scheme (LES) in its Equity and Equity Derivatives segments. Then known as MCX Stock Exchange, it had introduced the scheme in 2013 in order to encourage participation in these segments.

"The MCX-SX Liquidity Enhancement Scheme will appoint 3 market makers for futures contract in 50 liquid scrips. These market makers are incentivized to ensure that quotes and depth is available. For other stock futures, options and equity cash, all participants are incentivized to maintain passive orders which will help in building depth," it had said.