The Bombay Stock Exchange (BSE) is working on a special package for regional stock exchanges seeking membership of the bourse by floating subsidiaries.
In a related development, the exchange is expected to set up its first trading terminal in New Delhi this week, thus ending a three year struggle to set up its terminals in the capital.
BSE president Anand Rathi said the exchange is convening a meeting of the regional stock exchanges who are keen to trade on BSE after floating a subsidiary which will take membership of the bourse and is considering a special package for them.
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The National Stock Exchange (NSE) has already enrolled two such stock exchanges, the Over The Counter Exchange of India (OTCEI) and the Bangalore Stock Exchange (BgSE), but the country's largest exchange has made it clear that it will not be offering any special sops to these exchanges. The only relaxation that it has given is in the ownership norms of the entity taking the membership.
BSE, however, is keen to attract the smaller stock exchanges to trade on its platform and thus boost volumes at BSE as well. "We are working out a package which would make it attractive for these exchanges to become our members. We will discuss the same with these stock exchanges and then finalise it," said Rathi.
Rathi said that with the regulator paving the way for the expansion of the bourse to all parts of the country, the exchange's brokers are set to move to New Delhi. BSE has been keen to tap the second largest city in terms of business volumes but has not been able to do so as the Delhi Stock Exchange (DSE) had refused to allow it to set up terminals. BSE terminal were available at the outskirts of the city like Noida and Gurgaon. Now this requirement of seeking an approval from a stock exchange has been withdrawn. The capital accounts for almost 20 per cent of NSE's total volumes.
"The first BSE terminals should be up in New Delhi this week. Our turnover has seen a real increase of almost 80 per cent in the recent past. A large percentage of our turnover now comes from outside Mumbai and this will only grow further as we expand to more centres," said Rathi.
BSE is currently on a technology upgradation drive. It is upgrading its server and is also revamping its current network to make them capable of handling more business volumes. BSE has over the last couple of months come closer to NSE's vol