Metropolitan Stock Exchange (MSEI) Unlisted Shares

Metropolitan Stock Exchange of India Limited (MSEI) is a full-service National level Stock Exchange with license to operate in Equity, Equity Derivatives, Currency Derivatives, Debt and SME Platform. It has live trading platform in all segments except SME. MSEIL has two subsidiaries: Metropolitan Clearing Corporation of India Limited (MCCIL) and MCX SX KYC Registration Agency Limited (MRAL) in which it holds 86.94 and 100 per cent. MCCIL is in the business of clearing and settlement of deals in multi asset classes carried out at MSEIL and MRAL is in the business of maintaining a database for members of the exchange and other under the Know Your Client (KYC) Guidelines.

Key Highlights

(i) The ownership of MSEIL is diversified between corporates, banks and individuals.

(ii) The shareholding of MSEIL consists of Banks/Flls at 23.64% which includes leading public and private sector
banks like State Bank of India, Bank of Baroda, Punjab National Bank, Axis Bank, HDFC Bank etc.

(iii) Leading Corporates and institutions hold around 29.94% which includes Edelweiss Commodities Services Limited, IL&FS Financial Services Limited, Multi Commodity Exchange of India Limited, etc.

(iv) Individual Investors hold around 40.47% which includes leading investors like Mr. Rakesh Jhunjhunwala, Mr. Radhakishan Damani, Mr. Nemish Shah among others.

Metropolitan Stock Exchange (MSEI) Unlisted Shares Details:

Total Available Shares:	1000000
Face Value:	₹ 1 Per Equity Share
ISIN:	INE312K01010
Lot Size:	10000 Shares
Current Unlisted Share Price:	₹ 1.45 Per Equity Share
Retail Discount:	Bulk Deal (5%)

Promoters And Management:

Promoters and Director of Metropolitan Stock Exchange (MSEI) Unlisted Shares Company are:

NAME	DESIGNATION
Mr. Udai Kumar	Managing Director & CEO
Prof. Ashima Goya	Chairperson & Public Interest Director
Mr. D. G. Patwardhan	Public Interest Director
Mr. D. K. Mehrotra	Public Interest Director
Mr. Ajai Kumar	Public Interest Director
Mr. Ketan Vikamsey	Public Interest Director

Shareholding Pattern:

Top 10 Shareholders of MSEI as on 31.03.2018

Sr.no	Name of the Shareholder	No.of Shares	%age
1	Multi Commodity Exchange of India	33,17,77,008	6.94%
2	Siddharth Balachandran	23,84,09,950	4.99%
3	RADHAKISHAN S Damani	11,93,63,496	2.50%
4	TRUST INVESTMENT Advisors private Limited	11,91,15,930	2.49%
5	JHUNJHUNWALA Rakesh	11,91,08,353	2.49%
6	UNION BANK OF India	10,87,50,000	2.27%
7	STATE BANK OF India	9,74,00,000	2.04%
8	NEMISH S SHAH	9,73,70,000	2.04%
9	AADI FINANCIAL Advisors LLP	9,73,50,000	2.04%
10	MAIANK BHARAT Kumar Mehta	8,87,54,112	1.60%

Financials of Metropolitan Stock Exchange (MSEI) Unlisted Shares:

Consolidated Financial Performance
Particulars (Rs. In Lakhs)	2015-16	2016-17	2017-18
Total Revenue	3200.64	3638.37	2828.06
Profit/Loss Before Tax (PBT)	-4005.34	-3258.25	-5476.30
Profit/Loss After Tax (PAT)	-4005.34	-3258.25	-5474.85
Earnings per share (EPS)	-0.16	-0.15	-0.15

Other Highlights
Particulars (Rs.In Lakhs)	2018
Equity Capital	4773.91
Book Value	39932.36
Book Value Per Share	1.20
Face Value (In Rs.)	1

Management view on the Financials of FY17-18 During the year under review, the Company has incurred losses of Rs.55.64 Crore, the losses increased by Rs.21.42 Crore, as compared to the previous year’s loss of Rs.34.22 Crore. The increase in losses is due to the increase in advertisement & business promotion expenses for re-launching of the exchange. Also, Income from Operations reduced from Rs. 17.05 Crore in FY 2016-17 to Rs. 8.49 Crore in FY 2017-18, which is decreased by 50% due to challenging business conditions. During the year Other Income was Rs.5.11 Crore as compared to Rs. 11.00 Crore in FY 2016-17. Other Income was higher in FY 2016-17 as compared to FY 2017-18 primarily due to Rs.1.35 Crore interest earned on the deposit of Rs.20 Crore kept with Bombay High Court and Rs.4.09 Crore interest received from Income Tax department on various refunds received during the year 2016-17. Due to accumulated losses available for income tax set off and net loss for the year under review, Company has paid no income tax for the year. During the year, Company has incurred capital expenditure of Rs.7.59 Crore mainly on various software & EMC Storage to support Exchange’s business requirements.

Annual Report 2018

Annual Report 2017

Annual Report 2016

Company Address:

Metropolitan Stock Exchange of India Limited, Vibgyor Towers, 4th floor, Plot No C 62, G - Block, Opp. Trident Hotel, Bandra Kurla Complex, Bandra (E), Mumbai – 400 098, India. phone No. +91 22 6112 9000 Website: www.msei.in

Discussion on Metropolitan Stock Exchange (MSEI) Unlisted Shares:

********Postive News for MSEI Share*********

The SEBI is reducing the Net Worth Requirement of one of the Subsidiaries of i.e. MCCIL from 300 Cr to 100 Cr. So the saving of Rs. 200 Cr can be utilized for the turnaround of MSEI and we can see a lot of changes in the company operationally.

On August 4, 2018 the company has offered to its eligible shareholders, on rights basis, 68,32,00,300 equity shares at a price of INR 2.00 aggregating to INR 136,64,00,600 in the ratio of 1 (one) equity share for every 7 (seven) equity shares (1:7) held as on the record date (i.e., August 03, 2018).

This issue opened on August 10, 2018, and closes on September 4, 2018.

The proceeds raised from the issue of Equity Shares shall be utilized to implement the business growth plan of the exchange and achieve breakeven.

Conclusion :

This clearly shows that the company is estimating that share price of MSEI shares worth more than Rs.2

Subsidiaries of MCX as on 31.03.2018

(i) The Company has two subsidiaries i.e. Metropolitan Clearing Corporation of India Limited (MCCIL) and MCX-SX KYC Registration Agency Limited (MCX-SXKRA).

(ii) Metropolitan Clearing Corporation of India Limited (MCCIL) undertakes clearing and settlement of the trades transacted on the Exchange platforms. As on March 31, 2018, the operating income of MCCIL has decreased from Rs. 0.67 crore in the previous year to Rs. 0.23 crore in the current year. The profit after tax decreased from Rs. 1.64 crore in the previous year to Rs. 0.88 crore in the current year. Operational the l income has gone down because of reduction in clearing and settlement fees revenue. Decreased in Profit before tax was due to increase in Technology and other expenses.

(iii) MCX-SX KRA is a wholly owned subsidiary of the Company incorporated to undertake the business of KYC (Know Your Customer) Registration Agency Metropolitan Stock Exchange of India Limited and allied activities, subject to registration with SEBI under SEBI {KYC (Know Your Client) Registration Agency} Regulations, 2011. MCX-SX KRA is yet to commence its operations.

MCCIL has executed an agreement with Indian Commodity Exchange Limited (ICEX) for offering clearing and settlement services to ICEX for trades done on their existing Commodities and derivatives segments. MCCIL is awaiting SEBI approval for the same.

As per Annual Report 2018

(i) The Company is a full-service National level Stock Exchange with a license to operate in Equity, Equity Derivatives, Currency Derivatives, and Debt Platform. The Exchange has a live trading platform in all segments except SME. The Exchange also has a subsidiary Metropolitan Clearing Corporation of India Limited (MCCIL) for clearing and settlement of all trades on the Exchange.

(ii) The current owner of the Exchange is well diversified between corporates, banks, and individuals. The Exchange is required to seek annual renewal of recognition from SEBI which is next falling due in September 2018. The Exchange has already applied to SEBI for the same.

(iii) The overall business plan involves a 360-degree focus on business positioning, members’ engagement, branding, advertising, product development, and business process efficiencies.

(iv) The Company shall continue to optimize its cost structure while incurring necessary business expenses. Operating expenses such as clearing & settlement charges, rent, annual maintenance contract charges for technology platforms shall be further reduced.