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DSE finally gets to be BSE member
The Delhi Stock Exchange has finally received the market regulator`s permission for becoming the member of the Bombay Stock Exchange that will facilitate DSE members to trade on the BSE terminals.
The Delhi Stock Exchange has finally received the market regulator's permission for becoming the member of the Bombay Stock Exchange that will facilitate DSE members to trade on the BSE terminals.
"The Securities and Exchange Board of India (Sebi) has given its permission last evening to DSE to enable its members trade on the BSE terminals as sub-brokers," DSE officials said in New Delhi on Thursday.
DSE had applied to Sebi under its plans for merger with BSE through its new subsidiary, DSE Financial Services Ltd, a few weeks ago, they said.
The designated directors of the subsidiary -- Vijay Bhushan, Parveen Kumar Singhal, Satish Kumar Bajpai, Ramesh Goel and Mahender Kumar Gupta -- had launched the new subsidiary for the merger of the two exchanges as DSE was losing business significantly. They said the subsidiary received initial subscription of Rs 1 lakh each from 113 members who decided to take the trading facility on the BSE terminals. Alarmed by the dipping volumes of business, the DSE had opted to join BSE as sub-brokers and had launched the connectivity with BSE in November, last year.
"Technically we have done the initial work and the rest of the things would be finalised in the board meeting of the subsidiary on April 22," they added. About 40 terminals in the old DSE building have already been networked to the BSE through sattelite and the trading facility would be provided to the members at a nominal cost of about Rs 700 per month each.
The DSE officials said the move was aimed at the smaller DSE brokers and BSE sub-brokers who ran out of business as volumes dipped in Delhi to touch Rs 5 lakh per day from more than Rs.75 lakh before the ban was imposed on carry-forward trading July, last year. The merger of BSE and DSE would grab the market share from the country's leading bourse National Stock Exchange (NSE) and the merged entities would become second largest equity market, they said. With the gradual decline of DSE business, most of its members had acquired membership of NSE and shifted their trading and volumes there. Both the exchanges are expected to appoint an independent valuer for valuation of the DSE assets based on which the value of trading rights would be extended to DSE members.
The merger proposal had come from the BSE last year, but at that time, DSE could not pursue the matter as it had already entered into a memorandum of understanding with the Calcutta Stock Exchange, the officials said.
Bureau Report
DSE had applied to Sebi under its plans for merger with BSE through its new subsidiary, DSE Financial Services Ltd, a few weeks ago, they said.
The designated directors of the subsidiary -- Vijay Bhushan, Parveen Kumar Singhal, Satish Kumar Bajpai, Ramesh Goel and Mahender Kumar Gupta -- had launched the new subsidiary for the merger of the two exchanges as DSE was losing business significantly. They said the subsidiary received initial subscription of Rs 1 lakh each from 113 members who decided to take the trading facility on the BSE terminals. Alarmed by the dipping volumes of business, the DSE had opted to join BSE as sub-brokers and had launched the connectivity with BSE in November, last year.
"Technically we have done the initial work and the rest of the things would be finalised in the board meeting of the subsidiary on April 22," they added. About 40 terminals in the old DSE building have already been networked to the BSE through sattelite and the trading facility would be provided to the members at a nominal cost of about Rs 700 per month each.
The DSE officials said the move was aimed at the smaller DSE brokers and BSE sub-brokers who ran out of business as volumes dipped in Delhi to touch Rs 5 lakh per day from more than Rs.75 lakh before the ban was imposed on carry-forward trading July, last year. The merger of BSE and DSE would grab the market share from the country's leading bourse National Stock Exchange (NSE) and the merged entities would become second largest equity market, they said. With the gradual decline of DSE business, most of its members had acquired membership of NSE and shifted their trading and volumes there. Both the exchanges are expected to appoint an independent valuer for valuation of the DSE assets based on which the value of trading rights would be extended to DSE members.
The merger proposal had come from the BSE last year, but at that time, DSE could not pursue the matter as it had already entered into a memorandum of understanding with the Calcutta Stock Exchange, the officials said.
Bureau Report