Latest news with #JigneshShah
Hans India
17-05-2025
- Business
- Hans India
How Jignesh Shah Created 10 World-class Exchanges in 10 Years?
If you have ever created something from scratch, be it a painting, a sculpture, or a business, you would know it demands vision, patience, and relentless effort. Now, imagine creating not one, but ten world-class exchanges! Sounds impossible, right? Not for Jignesh Shah. A tech genius with a deep understanding of market ecosystems, he turned an ambitious vision into a game-changing reality. Through Financial Technologies (FTIL), now known as 63 Moons Technologies, he ushered in a new era in global finance from India. What followed wasn't just a story of enterprise but a revolution that redefined how financial markets operate, grow, and connect. Jignesh Shah transformed how people think about wealth creation and market access. In an extraordinary feat, he established ten global exchanges in ten years, including Jignesh Shah MCX and Jignesh Shah NSEL, spanning continents and connecting millions of people to financial systems. He unlocked value at the middle and bottom of the pyramid, empowering everyday people with access to opportunity. Here's the tale of 'The Exchange King'. Shaping The Global Exchange Landscape In 1995, Jignesh Shah laid the foundation for 63 Moons Technologies, a company built to deliver cutting-edge technology solutions and domain expertise for digital transactions across asset classes. In 1998, when India's financial landscape was still finding its footing, Jignesh Shah stepped in with a disruptive innovation: ODIN (Open Dealer Integrated Network). Built for brokers, traders, and investors alike, ODIN wasn't just cost-effective; it was transformative. Against the odds, it rose to dominate the market with an 80% share, setting a new benchmark in trading platforms. But Shah didn't stop at revolutionising the tools. He set his sights on reimagining the very marketplaces themselves. Having powered India's brokerage ecosystem with ODIN, his next move was bold and unprecedented: create a network of world-class exchanges. ● The Big Bang with Jignesh Shah MCX The Big Bang in the exchange universe happened in 2003 with the launch of the Multi Commodity Exchange (MCX) that was envisioned as a complete ecosystem. This holistic approach wasn't common at the time. But it worked brilliantly. Jignesh Shah MCX offered Indian traders and businesses a way to manage price risks efficiently and participate in a transparent, technology-driven price discovery process. It became a game-changer for farmers, manufacturers, and traders alike, especially in a post-reform India. When the Lehman Brothers crisis rocked global financial markets in the late 2000s, panic and paralysis were widespread. Yet, amid the chaos, India's broking industry found a surprising source of stability with Jignesh Shah MCX. While equities took a hit, MCX enabled uninterrupted trading in commodities, giving brokers and investors a much-needed lifeline. Jignesh Shah MCX emerged as 1 of the top 3 commodity futures exchanges in the world. It held the number one global spot in gold and silver trading. MCX also holds the distinction of being the first exchange in India to go public. ● Going Global with DGCX After transforming the domestic market, Jignesh Shah set his sights overseas. In 2005, he made a bold move by launching the Dubai Gold & Commodities Exchange (DGCX). This wasn't just another international expansion. It was historic. DGCX became Dubai's first commodity derivatives exchange, and more importantly, it marked the first-ever 50:50 joint venture between a company from the private sector and the Government of the United Arab Emirates (UAE). Back home in India, 2005 also witnessed the creation of Jignesh Shah NSEL, National Bulk Handling Corporation Limited, Atom Technologies, TicketPlant and Risk Solutions by Jignesh Shah. ● Driving Financial Inclusion with Jignesh Shah MCX-SX In 2008, Jignesh Shah introduced yet another ambitious venture in the form of MCX-SX (MCX Stock Exchange). It was a mission-driven initiative, built to promote financial inclusion and democratise access to capital markets across India. While traditional stock exchanges largely catered to major metros, MCX-SX aimed to bring the trading culture to the grassroots — to smaller towns, emerging cities, and even rural investors. It wasn't just about trading; it was about building financial awareness and creating opportunities for first-time investors. The exchange also played a pivotal role in energising the bond markets. With innovative products and an inclusive approach, MCX-SX opened up new avenues for capital raising and investment, particularly for smaller businesses and underserved market participants. ● Powering India with IEX 2008 was a time when the idea of trading electricity was practically non-existent. Jignesh Shah dared to imagine an exchange for electricity. This led to the birth of the Indian Energy Exchange (IEX), a pioneering platform that completely transformed how energy was bought and sold in the country. What made this even more remarkable was the focus on small and medium enterprises (SMEs), which were often at the mercy of erratic power supply and rising operational costs. IEX provided a lifeline, allowing states with surplus electricity to trade with deficit ones, ensuring smoother distribution and better efficiency. ● Expansion with Jignesh Shah NSEL & International Exchanges 2008 marked a pivotal year for Jignesh Shah, as he expanded his reach even further, setting up the Singapore Mercantile Exchange (SMX). It was a cutting-edge electronic system designed to seamlessly integrate derivatives and physical commodity trading within Singapore, making it a gateway for Asian markets. By aligning with the Asian time zone, SMX helped to boost regional trading and established itself as a key player in global commodity exchanges. In the same year, Bahrain Financial Exchange (BFX) was also launched. It was the first exchange set up by an Indian entity in the region. What made BFX stand out was its focus on Sukuk and other Shariah-compliant financial instruments. The expansion continued into 2009 with the establishment of Bourse Africa, another ambitious project spearheaded by Jignesh Shah NSEL. Bourse Africa was designed as a multi-asset exchange offering significant trading opportunities across the African continent. A Legacy of Vision and Execution The title 'Exchange King' is a fitting acknowledgement of a man who dared to dream of a financially inclusive world, empowered by technology. Whether it was DGCX, Jignesh Shah MCX, or Jignesh Shah NSEL, Jignesh Shah FTIL worked honestly, diligently, and passionately to ensure all his ventures added value. With his work continuing to resonate across the globe, Jignesh Shah's journey is a testament to the power of courageous leadership, unwavering perseverance, and a commitment to creating world-class institutions. From traders in metro cities to entrepreneurs in rural heartlands, his exchanges became enablers. He bridged the urban-rural divide, and in doing so, reshaped how the world saw India. No longer just a back office to the world, 'Brand India' began to shine as a hub of Intellectual Property-led innovation, thanks to 'The Exchange King', Jignesh Shah.
Mint
06-05-2025
- Business
- Mint
Sebi's plan set to derail Metropolitan Stock Exchange's comeback
A Mumbai-based stock exchange was planning a revival, but the market regulator's proposal to limit index derivative expiries to two days a week has cast its future into doubt. The Metropolitan Stock Exchange of India (MSEI) had raised ₹ 238 crore from broking firm Groww's parent Billionbrains Garage Ventures, Zerodha's Rainmatter Investments, Share India Securities, and Securocorp Securities India in December 2024. The bourse planned to offer a derivative contract for its flagship SX40 index. All National Stock Exchange Ltd's derivatives expire on Thursday, BSE Ltd's on Tuesday, and the MSEI had set Friday expiry for its SX40 contracts. Also read: Sebi eases ESG rating rules. But experts warn of short-term risk The exchange offers trading but generates minuscule daily volumes at 30,950 on 5 May. By contrast, NSE's cash trading volumes on May 5 stood at 293.72 crore, while for BSE it was 58.59 crore. MSEI was betting that an independent derivative expiry day would help it gain some market share from NSE and BSE. Sebi's plan could thwart MSEI's bid to position itself as an alternative to its more established and larger rivals, experts said. 'It is highly unlikely that the market regulator will allow a separate day expiry for MSEI because then it circumvents Sebi's original plan to reduce the number of weekly expiries," said a broker on the condition of anonymity. If the exchange does not get a separate expiry day, it will have no economic value, the broker said. Established in 2008 by Jignesh Shah and associated entities, it was previously known as MCX-SX. Shah was allegedly involved in the National Spot Exchange Ltd fraud, which came to light in 2013--he denied wrongdoing. Also read: Primary markets see a slow start to 2025 amid increased volatility Sebi published a consultation paper on March 27, proposing that all equity derivatives contracts of an exchange should either expire on Tuesdays or Thursdays. This would provide 'optimal spacing between expiries in a week and avoid concentration risk". If all exchanges have expiries on the same day, traders might naturally go where there's the most liquidity, like NSE or BSE, said Nilesh Sharma, executive director and president (broking) at SAMCO Securities. Sharma said traders will always prefer better price discovery and liquidity, which is available on the NSE and BSE. Latika Kundu, managing director and chief executive of MSEI, said that as a market infrastructure institution, it has been entrusted with the responsibility of building markets that support the country's economic growth. To reach India's goal of becoming a developed nation, it needs multiple players to help build competitive capital markets, she said. To create a healthy competitive environment, there has to be an enabler, an exclusive expiry assigned to MSEI in this case, Kundu said. 'If that is taken away, we risk reverting to a duopoly or even monopoly, as the equity cash and equity derivatives markets are interdependent on each other." Brokers and investors were betting on the revival of MSEI. Its unlisted shares traded for about ₹ 2 apiece for years. However, after Zerodha and Groww's entry in December, the indicative share price touched ₹ 9 and went to ₹ 12 in January, before falling to trade at ₹ 6 currently, according to data from Unlisted Arena, which trades in unlisted and delisted shares. Zerodha and Share India Securities declined to comment, while queries emailed to Groww and Securocorp Securities India remained unanswered. An email sent to Sebi also remained unanswered. Apart from the SX40 index, the MSEI also offers the SX Bank index. The Nifty 50 futures on the NSE, expiring on May 29, recorded a volume of 76,211 contracts. The Sensex futures contract on the BSE, set to expire on May 26, saw a modest volume of 136 contracts. The MSEI's SX40 futures contracts show zero trading volume. Sebi's expiry proposal is just one of the issues plaguing MSEI. Not many brokers offer the exchange's contracts to their clients. It also lags its peers in infrastructure required to carry out these derivative trades seamlessly. 'The contracts on the MSEI exchange are live, but for trading volumes to build, brokers must obtain the necessary licences from the exchange and bring in customers," said Suvajit Ray, head of products of IIFL Capital Services Ltd. 'Once licensed, brokers can offer these contracts, but actual volumes will depend on customer participation—placing trades, paying premiums, and engaging in settlements." Ray added that if not immediately, then gradually, once the exchange's infrastructure is in place, governance standards are met, and operational processes are streamlined, MSEI could function like any other exchange. 'It may start with lower volumes and fewer participants, but as brokers come on board and traction builds, we can see volumes." Also read: Mint Primer: Why Sebi wants investors to skip opinion trading Kundu of MSEI said the exchange has already started upgrading the technology of its network, infrastructure and systems to ensure seamless connectivity and a better trading experience for members.
