- News>
- Finance & Markets
Zero-business DSE posts profits
New Delhi, Oct 19: Confounding financial pundits, the moribund Delhi Stock Exchange posted a net profit of Rs 1.05 crore during 2002-03 despite recording no business for most part of the year and making payments towards VRS.
New Delhi, Oct 19: Confounding financial pundits,
the moribund Delhi Stock Exchange posted a net profit of Rs
1.05 crore during 2002-03 despite recording no business for
most part of the year and making payments towards VRS.
That compares well with a net loss of Rs 3.80 crore in
the previous year.
The net profit during last fiscal was mainly due to high listing fees, now the sole bread-earner of the seven decades old bourse.
Interestingly, the net income in 2002-03 increased 25-fold to Rs 3.84 crore as against a mere Rs 16 lakh during 2001-02, according to DSE annual report for 2002-03.
"Had it not been for an additional expenditure of Rs 1.05 crore, the exchange would have posted higher profits," the DSE sources told reporters.
Listing fees, however, are not going to sustain the DSE any longer.
Indian INC (IFCI and a number of FMCG giants for example) are increasingly getting de-listed from the bourse, as Securities and Exchange Board of India pitches for a consolidated Indonext exchange model.
"Due to issuance of delisting guidelines by Sebi as well as change in the regulatory policy doing away with mandatory listing at regional stock exchange, the requests for delisting have gone up significantly," the report said.
"It is likely to have significant impact on listing fee revenue in the years to come."
Bureau Report
The net profit during last fiscal was mainly due to high listing fees, now the sole bread-earner of the seven decades old bourse.
Interestingly, the net income in 2002-03 increased 25-fold to Rs 3.84 crore as against a mere Rs 16 lakh during 2001-02, according to DSE annual report for 2002-03.
"Had it not been for an additional expenditure of Rs 1.05 crore, the exchange would have posted higher profits," the DSE sources told reporters.
Listing fees, however, are not going to sustain the DSE any longer.
Indian INC (IFCI and a number of FMCG giants for example) are increasingly getting de-listed from the bourse, as Securities and Exchange Board of India pitches for a consolidated Indonext exchange model.
"Due to issuance of delisting guidelines by Sebi as well as change in the regulatory policy doing away with mandatory listing at regional stock exchange, the requests for delisting have gone up significantly," the report said.
"It is likely to have significant impact on listing fee revenue in the years to come."
Bureau Report