D-Street Expansion: Metropolitan Stock Exchange Expected To Launch Soon

D-Street is set to witness the addition of a new stock exchange by the end of January 2026. The Metropolitan Stock Exchange (MSE) is expected to become operational in the next two weeks, allowing traders to trade on the exchange by the end of this month.

The exchange has decided to enhance liquidity through a comprehensive liquidity enhancement scheme (LES). An LES is a framework deployed by exchanges and regulated by the Securities and Exchange Board of India (Sebi) to increase trading volumes in securities that are otherwise difficult to buy or sell quickly. According to a report by CNBC Awaaz, MSE is set to engage market makers to enhance liquidity for 130 stocks. However, Outlook Money could not independently verify the report or the timeline for the launch.

Earlier in 2025, MSE had announced that it had raised Rs 1,000 crore through a private placement to Peak XV Partners, Jainam Broking, Monarch Networth, Trust Investment Advisors. Prior to that in 2024, MSE had raised Rs 240 crore from Rainmatter (Zerodha), Billionbrains (Groww) and Share India Securities through a rights issue.

Tough Road Ahead For MSEI

According to the report, the NSE and BSE hold a majority share within the cash segment. The NSE holds a 90-92 per cent share, while BSE holds 8-10 per cent share in the cash segment. On the other hand, in the stock futures and options (F&O), the NSE has around 95 per cent share, while BSE holds around 5 per cent share. Within the F&O segment, NSE holds nearly 80 per cent share while the BSE holds approximately 20 per cent share.

Earlier in May 2025, all equity derivative expiries (weekly, monthly, and quarterly) were restricted to just two days a week – Tuesdays and Thursdays. Following the directive, stock exchanges realigned their expiry calendars effective September 1, 2025. At present, the NSE has Nifty 50 expiry on Tuesdays, while BSE has Sensex expiry on Thursdays.

How Can The MSEI Launch Impact Investors

The anticipated launch of MSE is expected to introduce structural changes in how investors trade. The introduction of an LES is also expected to boost liquidity and curb the fear of smaller exchanges getting "stuck" in a stock because no one is buying. The MSE’ s flagship index, SX40 Index (40 large-cap stocks) is expected to have its own F&O.

The new index will offer a new benchmark for diversification beyond the Nifty 50 and the Sensex. Additionally, since Sebi limits new weekly expiries to specific days, the exchange is likely to launch its derivatives products on days which do not clash with the NSE expiry or the BSE expiry, allowing traders more days within the week to hedge or speculate.