Metropolitan Stock Exchange bets on new technology: What you need to know before trading

With fewer listed companies and products, investors may find it difficult to build a diversified portfolio compared with what is available on NSE or BSE

• MSE relaunches with upgraded systems and Rs 1,200 crore fintech backing
• MSE aims to challenge NSE and BSE, offering 3,000+ companies for trading
• MSE suits experienced investors willing to accept liquidity risk for long-term bets.

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The Metropolitan Stock Exchange (MSE) is making a comeback. Powered by an upgraded engine and backed by more than Rs 1,200 crore from fintech investors, MSE aims to challenge the duopoly of the National Stock Exchange (NSE) and BSE. On January 27, 2026, MSE successfully implemented a system and market infrastructure upgrade.

“A relaunch typically reflects upgraded systems, improved governance, increased transparency, and renewed efforts to rebuild trust and relevance in the market. The process involves fixing previous system flaws to meet present market requirements instead of creating an entirely new system,” said Piyush Jhunjhunwala, CEO & Founder, Stockify.

Founded in 2008, the MSE launched its currency derivatives segment on October 7 that year. Originally called MCX-SX, it was rebranded in 2015 and subsequently gained recognition from the Securities and Exchange Board of India (SEBI) to operate in multiple segments, including currency derivatives, debt securities, equities, and equity derivatives.

A lot has changed since MSE’s earlier avatar. Digital infrastructure has improved, and the regulatory framework is far stronger, which, along with a growing economy, has seen a huge growth in the investor base.

Were investors aware of it earlier?

Investor awareness was poor as financial literacy stayed low and marketing efforts failed. Retail investors, who depended on traditional brokerage services and major stock exchanges, paid little attention to other trading platforms.

In the past, information was distributed through slow methods that relied mostly on physical channels. Investors now use social media platforms and financial applications together with online news websites and digital marketing campaigns to discover investment opportunities, Jhunjhunwala said. Both regulators and institutions work together to support programmes that educate investors. Public awareness has increased through the efforts of organisations that set up platforms that citizens can access, he said.

The road ahead of MSE

According to the MSE statement, the Exchange will implement a Liquidity Enhancement Scheme for 130 stocks; however, the exchange has over 3,000 companies available for trading in the permitted trade category. Additionally, the exchange has 261 companies exclusively listed on MSE.

More companies, especially SMEs and startups, are entering the capital market. Digital onboarding, faster compliance processes, and simplified listing procedures have led to increased participation. “Investors now possess improved access to data and analytics and real-time information, which leads to better decision-making. The market has progressed toward greater inclusivity, transparency, and competitive business practices," said Jhunjhunwala.

Moreover, MSE is fully compliant with all obligations and regulatory requirements prescribed by SEBI. All recognised stock exchanges operate under the same regulatory framework mandated by SEBI, per the MSE statement.

Points to consider

Retail investors looking to build long-term wealth are being urged by experts to think carefully before placing bets. Jhunjhunwala says, MSE remains relevant for sophisticated investors who understand liquidity risk and are willing to take selective, long-term exposure to specific companies.

Kranthi Bathini, Equity Strategist at WealthMills Securities Pvt Ltd, said, "The MSE is not new; it was earlier known as MCX-SX and has only changed its name. Winning back investor confidence might take time."

For those focused on steady wealth creation, established exchanges continue to offer deeper markets, better liquidity and stronger investor protection. “For most retail investors, however, larger exchanges offer a more stable and transparent ecosystem that is better suited to systematic wealth creation,” said Ankur Punj, MD and Business Head, Equirus Wealth.