MUMBAI: The Pune Stock Exchange (PSE) is all set to initiate a dialogue with the premier exchanges — NSE and BSE — in a bid to enable its members to trade on the terminals of these exchanges.
This follows the in-principle approval given by Sebi to the Madras Stock Exchange (MSE), enabling its members to trade on the terminals of the National Stock Exchange (NSE).
PSE had presented a similar MoU in 2006, which was not taken up seriously. “The exchange has now prepared a document to be presented to both the exchanges regarding permission to trade on their platform, subject to approval from Sebi and suitable safeguards,” PSE chief operating officer Nihali Mitra told ET.
If earlier reports are to be believed, PSE boasts of about 350 ticket-holders (or members) and logs daily trading volumes of around Rs 100 crore. On bad days, the exchange records volumes in the range of Rs 30 -40 crore. Currently, more than 300 companies are traded on the PSE. During its hey days, PSE was used by brokers from nearby towns like Satara, Sangli, Solapur, Kolhapur, Ahmednagar, Aurangabad and Nasik.
“The MoU is applicable for both cash market and F&O segments subject to PSE getting regulatory and respective exchanges approvals. We will be really delighted if we are permitted to trade on the F&O segment as well. Currently, among regional stock exchanges, Ludhiana Stock Exchange and Bangalore Stock Exchange have been given permission (by NSE/Sebi) to trade in the F&O segment,” Ms Mitra said.
Some years ago, Sebi had directed regional stock exchanges to corporatise themselves in order to survive. Now, there has been a rising interest in the RSEs due to the new FDI norms.
“If the regulator approves the arrangement with either of the exchanges or both, it will do a world of good for brokers and investors on PSE. Besides fulfilling our intentions to preserve the PSE, our exchange will be able to complement the bigger exchange by bringing in more trades and volumes. Also the arrangement would not only provide access to the larger market, but also aid in creation of a smaller market” Ms Mitra added.
Recently, the Calcutta Stock Exchange had got into a similar tie-up with the BSE, facilitating members to trade on the exchange’s BOLT terminal. The Mumbai-based exchange had agreed to the proposal on condition that BSE would be admitted as a shareholder with a 5% stake in the paid-up capital of CSE.
The BSE had decreed CSE to deposit a refundable interest-free deposit of Rs 12 crore, with a view to securing its obligations towards the Bombay Stock Exchange. According to sources, CSE brokers are also required to pay a fee (to BSE) for the BOLT connection. In the case of MSE, according to sources, the regional exchange will have to pay Rs 3 crore per annum, to enable its members to trade on the NSE platform.
This follows the in-principle approval given by Sebi to the Madras Stock Exchange (MSE), enabling its members to trade on the terminals of the National Stock Exchange (NSE).
PSE had presented a similar MoU in 2006, which was not taken up seriously. “The exchange has now prepared a document to be presented to both the exchanges regarding permission to trade on their platform, subject to approval from Sebi and suitable safeguards,” PSE chief operating officer Nihali Mitra told ET.
If earlier reports are to be believed, PSE boasts of about 350 ticket-holders (or members) and logs daily trading volumes of around Rs 100 crore. On bad days, the exchange records volumes in the range of Rs 30 -40 crore. Currently, more than 300 companies are traded on the PSE. During its hey days, PSE was used by brokers from nearby towns like Satara, Sangli, Solapur, Kolhapur, Ahmednagar, Aurangabad and Nasik.
“The MoU is applicable for both cash market and F&O segments subject to PSE getting regulatory and respective exchanges approvals. We will be really delighted if we are permitted to trade on the F&O segment as well. Currently, among regional stock exchanges, Ludhiana Stock Exchange and Bangalore Stock Exchange have been given permission (by NSE/Sebi) to trade in the F&O segment,” Ms Mitra said.
Some years ago, Sebi had directed regional stock exchanges to corporatise themselves in order to survive. Now, there has been a rising interest in the RSEs due to the new FDI norms.
“If the regulator approves the arrangement with either of the exchanges or both, it will do a world of good for brokers and investors on PSE. Besides fulfilling our intentions to preserve the PSE, our exchange will be able to complement the bigger exchange by bringing in more trades and volumes. Also the arrangement would not only provide access to the larger market, but also aid in creation of a smaller market” Ms Mitra added.
Recently, the Calcutta Stock Exchange had got into a similar tie-up with the BSE, facilitating members to trade on the exchange’s BOLT terminal. The Mumbai-based exchange had agreed to the proposal on condition that BSE would be admitted as a shareholder with a 5% stake in the paid-up capital of CSE.
The BSE had decreed CSE to deposit a refundable interest-free deposit of Rs 12 crore, with a view to securing its obligations towards the Bombay Stock Exchange. According to sources, CSE brokers are also required to pay a fee (to BSE) for the BOLT connection. In the case of MSE, according to sources, the regional exchange will have to pay Rs 3 crore per annum, to enable its members to trade on the NSE platform.
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