The Madras Stock Exchange (MSE) was a
stock exchange
A stock exchange, securities exchange, or bourse is an exchange where stockbrokers and traders can buy and sell securities, such as shares of stock, bonds and other financial instruments. Stock exchanges may also provide facilities for the ...
in
Chennai
Chennai (, ), formerly known as Madras ( the official name until 1996), is the capital city of Tamil Nadu, the southernmost Indian state. The largest city of the state in area and population, Chennai is located on the Coromandel Coast of t ...
,
India
India, officially the Republic of India ( Hindi: ), is a country in South Asia. It is the seventh-largest country by area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the ...
. The now defunct MSE was the fourth stock exchange to be established in the country and the first in
South India
South India, also known as Dakshina Bharata or Peninsular India, consists of the peninsular southern part of India. It encompasses the Indian states of Andhra Pradesh, Karnataka, Kerala, Tamil Nadu, and Telangana, as well as the union t ...
. It had a turnover (2001) of 3,090
crore
A crore (; abbreviated cr) denotes ten million (10,000,000 or 107 in scientific notation) and is equal to 100 lakh in the Indian numbering system. It is written as 1,00,00,000 with the local 2,2,3 style of digit group separators (one lakh is ...
($440 million), but was a fraction (below 3.5 per cent) of the turnover generated by the
Bombay Stock Exchange
BSE Limited, also known as the Bombay Stock Exchange (BSE), is an Indian stock exchange. It is located on Dalal Street in Mumbai. Established in 1875 by cotton merchant Premchand Roychand, a Jain businessman, it is the oldest stock exchange in ...
and
National Stock Exchange of India
National Stock Exchange of India Limited (NSE) is the leading stock exchange under the ownership of various group of domestic and global financial institutions, public and privately owned entities and individuals. It is located in Mumbai, Maha ...
. The turnover of the stock exchange was 19,907
Crore
A crore (; abbreviated cr) denotes ten million (10,000,000 or 107 in scientific notation) and is equal to 100 lakh in the Indian numbering system. It is written as 1,00,00,000 with the local 2,2,3 style of digit group separators (one lakh is ...
as of the financial year 2012.
History
The Madras Stock Exchange was founded in 1920 on Second Line Beach street in George Town.
Chandulal Motilal Kothari, the driving force behind the founding of the exchange, became its first president.
He established a planting and industrial conglomerate and later became the first Indian to represent the planting interests in the Madras Legislature.
In 1951, his son, D. C. Kothari, became the first Indian Chairman of the United Planters' Association of Southern India.
In 1996, the MSE was fully computerised and online trading became operational, as the MSE was connected to 120 broking offices in and around Chennai through
wide area network
A wide area network (WAN) is a telecommunications network that extends over a large geographic area. Wide area networks are often established with leased telecommunication circuits.
Businesses, as well as schools and government entities, us ...
ing. On 14 May 2015, SEBI permitted Madras stock exchange to exit.
Functions
The MSE had about 120 live members and 1,785 companies listed. The exchange followed the Rolling Settlement system, as per the January 2000
SEBI
The Securities and Exchange Board of India (SEBI) is the regulatory body for securities and commodity market in India under the ownership of Ministry of Finance within the Government of India. It was established on 12 April 1988 as an executive ...
(Securities Exchange Board of India) guidelines and a proactive Grievance Cell is operational. By this system, investors could log in their complaints, for which a number was be given for further reference, through which investors could keep track of the action taken by the exchange as regards their complaint.
A subsidiary company - MSE Financial Services Ltd, had been established. A member of the Bombay Stock Exchange, MSE Financial Services did help to create greater broker and investor flexibility through multi-market access. The members were able to trade in both BSE and MSE. This was followed up with National Stock Exchange (NSE) membership.
Trading on the exchange took place from 10.00 am to 3.30 pm.
Merging
As per June 2012 notification from the Securities and Exchange Board of India (SEBI), whereby individual stock exchanges should maintain a minimum liquid net worth of 1,000 million and exchanges that do not comply with this requirement should close down their operations by June 2015, the Bangalore Stock Exchange (BgSE) decided to merge with the Madras Stock Exchange. The combined entity became the single largest regional exchange in the country with over 1,000 local companies listed exclusively on it. BgSE and MSE together had a liquid net worth of around 500 million while another 500 million will be raised by liquidating certain idle assets (situated in Bangalore and Chennai) of these exchanges.
See also
*
List of stock exchanges in the Commonwealth of Nations
This is a list of active stock exchanges in the Commonwealth of Nations (Full Members). The Commonwealth of Nations features member-states located on all major continents and represents almost one-third of the Earth's population. Some states ...
*
List of South Asian stock exchanges
This is a list of Asian stock exchanges.
In the Asian region, there are multiple stock exchanges. As per data from World Federation of Exchanges, below are top 10 selected in 2020:
* Shanghai Stock Exchange, China
* Tokyo Stock Exchange, Japan
...
*
Economy of Chennai
References
{{Authority control
Economy of Chennai
Former stock exchanges in India
1937 establishments in India
Financial services companies established in 1937