Metropolitan Stock Exchange of India (MSEI) has announced it will conduct a special live trading session on February 1, 2026, to accommodate the Union Budget presentation. The announcement comes as the exchange prepares to launch regular trading operations later this month, marking a significant milestone in India's stock exchange landscape.

Special Budget Trading Session

MSEI issued a circular on January 19 informing members about the special trading arrangement. "On account of presentation of the Union Budget, members are requested to note that Exchange shall be conducting live trading session on February 01, 2026, as per the standard market timings," the exchange stated. February 1, 2026 falls on a Sunday, making this a special trading day.

The exchange will operate with standard market timings, including pre-open sessions from 9:00 AM to 9:08 AM and normal market trading from 9:15 AM to 3:30 PM, aligning with industry practices.

Trading Launch and Initial Offerings

MSEI is scheduled to begin regular live trading operations on January 27, starting with 130 stocks. The exchange's clearing and settlement operations will be managed by its subsidiary, Metropolitan Clearing Corporation of India (MCCIL).

Funding and Liquidity Enhancement

To address liquidity concerns typical of new exchanges, MSEI has implemented a comprehensive liquidity enhancement scheme. The exchange plans to appoint market makers to provide liquidity support for approximately 130 stocks.

MSEI has successfully raised ₹1,240.00 crores through two funding tranches:

The participation of major brokerage houses Groww and Zerodha in the funding rounds demonstrates industry confidence in the new exchange's potential.

Market Competition Landscape

MSEI enters a highly competitive market dominated by established exchanges NSE and BSE. Current market share distribution presents significant challenges for the new entrant:

Analysts note that breaking the NSE-BSE duopoly will be challenging given their strong market positions and established infrastructure. The dominance of NSE across all segments, particularly in futures and options trading, represents a significant competitive barrier for MSEI.

Strategic Positioning

Despite competitive challenges, MSEI's entry represents an important development in India's capital markets infrastructure. The exchange's focus on liquidity enhancement through market makers and backing from prominent fintech companies positions it as a potential disruptor in the trading ecosystem.

The special Budget day trading session demonstrates MSEI's commitment to providing comprehensive market access during critical financial events, potentially attracting traders seeking alternative platforms during high-volume periods.

India's stock exchange landscape is set for a significant change as the Metropolitan Stock Exchange (MSE) prepares to launch trading operations within the next two weeks. This development marks the first major challenge to the long-standing duopoly between the National Stock Exchange and Bombay Stock Exchange.

Funding and Strategic Partnerships

MSE has successfully raised substantial capital to support its launch, securing funding through strategic partnerships with established market players.

The participation of major brokerage houses Groww and Zerodha in the funding rounds demonstrates significant industry confidence in MSE's potential to establish itself as a viable alternative trading platform.

Liquidity Enhancement Strategy

Recognizing that liquidity remains a primary concern for any new stock exchange, MSE has developed a comprehensive approach to ensure adequate market depth from the outset. The exchange plans to implement a liquidity enhancement scheme that will appoint market makers to provide support for approximately 130 stocks.

This strategy builds upon MSE's previous experience with liquidity management. When operating as MCX Stock Exchange, the platform introduced a similar Liquidity Enhancement Scheme in 2013. Under that framework, the exchange appointed three market makers for futures contracts in 50 liquid securities, with incentives designed to ensure consistent quote availability and market depth.

Market Share Dynamics

The current Indian stock exchange landscape is dominated by NSE and BSE, presenting significant challenges for any new entrant. Market share data reveals the extent of this duopoly across different trading segments.

Analysts suggest that breaking this established duopoly will not be easy, given the strong market positions held by both exchanges and their extensive infrastructure and participant networks.

Regulatory Environment

The launch comes amid recent regulatory changes that may impact MSE's market entry strategy. SEBI introduced new rules in 2025 limiting weekly equity derivatives expiries to only two per segment during any given week. Currently, NSE conducts Nifty 50 expiries on Tuesdays, while BSE handles Sensex expiries on Thursdays.

This regulatory framework may present both challenges and opportunities for MSE as it seeks to establish its position in the derivatives market. The limited weekly expiry slots could potentially restrict MSE's ability to offer competing derivative products, while also creating opportunities for innovation in other market segments.

Market Impact and Future Outlook

The entry of MSE represents a significant development in India's financial market infrastructure. The exchange's focus on liquidity enhancement through market makers and its substantial funding base provide a foundation for challenging the existing market structure. However, the success of this venture will largely depend on MSE's ability to attract sufficient trading volumes and participants away from the well-established NSE and BSE platforms.

The coming weeks will be crucial as MSE begins operations and tests its systems against the competitive pressures of India's dynamic stock market environment.