MSEI Unlisted Share Crash 60%: SEBI Crushes Comeback Plans

After generating heavy expectations about its revival plans, the MSEI Unlisted Share Price has dropped by 60% since December 24. Once deemed to be a competition to exchanges like NSE and BSE, the MSEI is now struggling to keep up with investors as the revival expectations are fading away.

Let’s explore the reasons behind the drastic price fall and whether MSEI is worth investing or just a money trap.

SEBI Expiry Rule Change -A Blow To MSEI

The investor sentiment began fading when the Securities and Exchange Board of India (SEBI) fixed the expiry of derivatives contracts to only two days, Tuesday and Thursday, along with the announcement that only 1 weekly expiry contract would be allowed per exchange.

From this news, MSEI gained significant investor traction in the expectation that the exchange will be able to launch a weekly expiry contract day different from NSE and BSE. But after SEBI allowed only two days, this crashed investor sentiments, leading to the MSEI Unlisted Share Price falling by 24% in just 1 month. Refer to the graph below.

MSEI Share was trading at 6.6 per share, and within 1 month, it’s now trading at Rs 5 per share. Thus, we can analyse that the initial growth was driven by expectations about possible MSEI revival plans, along with raising additional capital, but the recent derivatives restriction lowered investor sentiment, leading to a correction.

Raising Rs 1,000 Crore Fresh Funding

MSEI has announced that it will be raising fresh funding of Rs 1000 crore. For this purpose, the exchange helped a meeting of BOD on July 8, 2025 and approved to increase the authorised capital up to 500 crore equity shares at a FV of Rs 1 and a premium of Rs 1. The allottees of these shares include:

• Peak XV Venture Partners Investments VII

• Share India Securities Limited

• Trust Investment Advisors Private Limited

• Jainam Broking Limited

• Marwadi Chandarana Intermediaries Brokers Pvt. Ltd

• KIFS International LLP.

This was around 7 months after the exchange raised Rs 238 crore on December 24 from investors like Billionbrains Garage Ventures, the promoter entity of Groww; Rainmatter Investments of Kamath brothers of Zerodha, Securicorp Securities India, and Share India Securities.

This capital was raised to revive MSEI’s operations and deal with regulations. But investors are doubtful if they will be able to bring a major change in their business post-raise.

Financial And Business Health

• MSEI operations are declining. Revenue was down by 50% from 9 crores in FY 23 to just 4.5 crores in FY 25, signalling a major operational decline. EBITA and PAT losses have reduced, but not enough to make the exchange profitable.

• Even after raising more than a total of 1200 crore since December 24, there is still no clear sign of MSEI reviving on the ground.

• The company wants to diversify into new services like Bond Trading, SME Platforms, and ESG Indices, but we still don’t know how certain these initiatives are.

Final Outlook On MSEI

With the current business model, financial decline and share price drops, MSEI is looking more like a speculative investment than a stable investment. If their plans work out, this can give huge investor returns, but if they don’t, the share price can fall or remain stable. Investors must check their risk tolerance and research all important metrics and information before investing in MSEI.

Disclaimer

This website is strictly for informational and educational purposes only. As per SEBI regulations, trading of unlisted shares is not permitted on online portals, and this site does not function as a trading or broking platform in any capacity. Users are advised to conduct their due diligence and consult with a SEBI-registered intermediary before making any investment decisions. The information presented here should not be construed as investment advice or a recommendation