The Metropolitan Stock Exchange plans to reverse ₹200 crore made in its wholly-owned subsidiary Metropolitan Clearing Corporation and launch a series of currency derivative contracts and weekly USD-INR contracts this month.
Capital and commodity market regulator SEBI recently reduced the net worth requirement of clearing houses to ₹100 crore from ₹300 crore.
This has enabled MSE to reverse ₹200 crore capital from its clearing subsidiary.
Kunal Sanghavi, Chief Financial Officer, MSE, said the exchange is now in a more comfortable position to launch new product segments and put behind it the lingering worries of working capital.
This has laid the path for the exchange to implement all the measures as per the turnaround plan, which includes expanding the product basket, he said.
SEBI has recently approved the exchange’s proposal to launch weekly options contracts on USD-INR and two new currency products.
The weekly contract reduces the ‘time cost’ of futures or options instrument and works in favour of market participants, said Sanghavi.
The weekly options contracts on USD-INR will complement the existing monthly contracts.
The MSE has also received approval to introduce monthly currency options contracts on EUR-INR, GBP-INR and JPY-INR besides introducing futures and options on cross currency pairs of EUR-USD, GBP-USD and USD-JPY.
The futures and options on cross currency pairs would be available for trading between 9 am and 7.30 pm on trading days.