New Delhi, June 26 -- Exchange stocks are in focus after Securities and Exchange Board of India chairman Tuhin Kanta Pandey said over the weekend there were no obstacles for the National Stock Exchange of India's initial public offering. The two prominent listed exchange stocks are the Multi Commodity Exchange of India Ltd (MCX) and BSE Ltd.

Exchanges are a lucrative business with either a duopoly or triopoly and a healthy Ebitda margin at more than 50% in most cases. The margin can continue to expand as it is a highly scalable model with low incremental capital expenditure and operating expenses. As a result, the return on average equity (RoAE) remains strong.

UBS and other brokerages released reports on MCX on 24 June, with the former...