The Securities and Exchange Board of India (SEBI) recognises Metropolitan Stock Exchange of India Limited (MSE) under Section 4 of the Securities Contracts (Regulation) Act of 1956. The Exchange was designated as a ""Recognized Stock Exchange"" under Section 2(39) of the Companies Act, 1956 on December 21, 2012 by the Ministry of Corporate Affairs, Government of India.
In accordance with global best practises and regulatory requirements, the Exchange's subsidiary clearing corporation, Metropolitan Clearing Corporation of India Ltd., initially handled the clearing and settlement of trades. After the implementation of the interoperability framework on June 3, 2019, trades can be cleared and settled via any of the National Clearing Corporations, namely Metropolitan Clearing Corporation (MCCIL), Indian Clearing Corporation (ICCL), and National Securities Clearing Corporation (NSCC) (NSCCL)
MSE provides an electronic, transparent, and technologically advanced trading platform for the Capital Market, Futures & Options, Currency Derivatives, and Debt Market segments. The Exchange has also received SEBI's approval in principle for the operationalization of the SME trading platform. On October 7, 2008, MSE commenced operations in the Currency Derivatives (CD) Segment under the regulatory framework of SEBI and Reserve Bank of India (RBI). MSE's Capital Market Segment, Futures and Options Segment, and flagship index 'SX40' were introduced on February 9, 2013 and trading began on February 11, 2013.
The SX40 index derivatives began trading on May 15, 2013. SX40 is a free-floating index comprised of 40 large-cap, liquid stocks that represent diverse economic sectors. The base date is March 31, 2010 and the base value is 10,000. The index is intended to serve as a performance benchmark and facilitate the development of efficient investment and risk management tools.
The MSE Debt Market Segment was introduced on June 7, 2013, and trading began on June 10, 2013. On January 20, 2014, the Exchange began live trading of cash-settled Interest Rate Futures (IRF) on Government of India securities in its Currency Derivative Segment. The product offers a superior way to hedge against fluctuating interest rates.
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