You may get to trade in BSE shares by fiscal end

MUMBAI: The Bombay Stock Exchange (BSE) is expected to shortly initiate the process of getting its shares listed on stock exchanges. The exchange is planning to make shares available for trading by the end of the current financial year, some senior brokers told ET.

Broker members of Asia’s oldest stock exchange discussed listing of BSE and also prospects of its futures and options (F&O) segment at an annual general meeting (AGM) held on Thursday. The corporatised exchange recently completed its demutualisation scheme by selling 51 per cent of brokers’ combined stake to different investors, including SGX and Deutsche Borse.

“Most members are in favour of the shares being listed as their holdings will become liquid. This will help improve valuations,” said a member present at the AGM. Brokers will also enjoy enhanced borrowing power if they are in possession of listed shares which can be kept with lenders as security, he added.

Some brokers feel that BSE need not go to the public for getting its shares listed. Given its legendary background, the Securities and Exchange Board of India can treat BSE’s case as a special one and exempt the bourse from making an initial public offering, they said. Besides listing, there was also discussion on prospects of F&O segment.

The BSE management is looking into various options of improving derivatives volumes which currently is in the range of Rs 1000-1,200 crore per day. The figure is much lower than its rival National Stock Exchange which accounts for a lion’s share in the derivatives segment.

BSE recently bought a 5% stake in Calcutta Stock Exchange (CSE) as part of the latter’s demutualisation scheme. CSE members are expected to become members of the BSE’s derivatives segment and help the latter in its efforts to increase volumes.