MSE seeks to create a global listing platform for Alternative Investment Funds (AIFs) in India
Metropolitan Stock Exchange of India Limited (MSE) has tied up with Canada-based DTM Global Holdings, a company promoted by the Delamore & Owl (D&O) Group and partners.
The partnership will pave the way for MSE to introduce for the first time in India the world-class product platforms and technology solutions of DTM Global and its parent organization in various market segments and the exchange ecosystem.
MSE is in talks with the Canadian company to introduce two marquee platforms VentureXchange and Go-liquidX. While introduction of VentureXchange will open up newer avenues of growth for the MSMEs and the start-up ecosystem, the objective of Go-liquidX is to create liquidity in the distressed and non- performing loan sector.
With the launch of VentureXchange, MSMEs along with startups will be able to raise finance through equity and debt platforms directly from international as well as local investors. The platform will also enable market participants to get an exit from their existing investments, thus freeing up more cash for additional investments in the economy.
For starters, MSE seeks to create a global listing platform for Alternative Investment Funds (AIFs) in India, subject to regulatory approvals, which will provide an exit route for the investors of these funds and also offer liquidity, thus leading to growth of the AIF industry. Illiquidity is the foremost challenge aced by the investors and VCs and their investments in AIFs are locked in for at least 5-10 years. The model will turbo
charge micro VCs creating exit and liquidity at the fund level. Portfolio companies on achieving growth and size, will list on VentureXchange/ main market as per laid down criteria.
Go-liquidX is envisaged to help solve the problem of non-performing and distressed assets held in the banking system of the country as well as the asset restructuring companies (ARCs). Go-liquidX will provide a platform for trading of distressed and other non-performing loans, subject to regulatory approvals in India. The idea is to create a process under a regulatory framework, whereby ARC’s security receipts will be securitized in an asset-backed-security (ABS) and listed on the exchange, investors from across the world will be able to buy into available opportunities in the distressed asset class, which will lead to liquidity and efficient pricing. The open process will make the system world class.
MSE’s association with DTM Global and the D&O Group will further strengthen its knowledge and technology capabilities. MSE plans to introduce robust platforms for development of both Equity and Debt Market segments and with DTM Global Holdings as its partners, there will be an added acceleration to such rollout programs.