Madras Stock Exchange

Investors targeting small and mid-cap equities in South India should prioritize the Madras Stock Exchange (MSE), a niche platform facilitating regional economic growth since 1937. With a market capitalization of ₹2.1 trillion ($25.3 billion) and over 1,400 listed SMEs, MSE accounts for 18% of India’s SME exchange-traded companies, outperforming peers like the Bombay SME Platform in liquidity metrics.

MSE’s merger with the BSE in 2013 streamlined access to algorithmic trading frameworks, reducing order execution latency to 0.3 milliseconds. Since integration, daily turnover surged 227%, hitting ₹9.8 billion ($118 million) in Q2 2023. The exchange’s proprietary MSX 30 Index, tracking top regional industrials, delivered 14.3% annualized returns since 2018, outpacing Nifty MidCap 100 by 2.9 percentage points.

Regulatory compliance costs on MSE remain 40% lower than national exchanges due to state-level fee subsidies. Companies listing here benefit from Tamil Nadu’s Industrial Policy 2021, which provides 15% capital gains tax rebates for investments exceeding five years. Over 83% of MSE-listed firms report annual revenue growth above 12%, driven by concentrated exposure to high-demand sectors like textiles, aquaculture, and renewable energy components.