Ahmedabad Stock Exchange (ASE), the second oldest stock exchange in the country, has initiated talks with Delhi Stock Exchange (DSE), MCX Stock Exchange (MCX-SX) and National Spot Exchange (NSE) for tying up with them for trading platform sharing.
ASE and DSE, which is planning to resume its operations from November this year after a gap of nearly eight years, today held a meeting in this regard. As part of its revival strategy, DSE wants to join hands with various regional stock exchanges (RSEs) to offer trading rights to these RSEs.
"We are talking with regional stock exchanges including ASE for a tie up to provide trading platform,” said B. K. Sharma, general manager, market operations, DSE. “Both exchanges require SEBI's nod for a tie-up. If the deal materialises, ASE brokers can trade on DSE platform,” he added.
Meanwhile, ASE sources revealed the exchange is also in talks with NSE and MCX-SX. "All talks are at a very initial stage and nothing has been firmed up as of now," sources said adding that the exchange would require approval from the board before entering into an agreement with any player.
It may be mentioned here that DSE is the second largest exchange of the country in terms of numbers of companies listed with it. The total number of companies listed at DSE as on date is 2,800. Out of these,1800 are exclusively listed with the exchange.
Over the last decade, the exchange had created a commendable track record with DSE index crossing 1000 points in 1992 and all time high trading volume touching at Rs 9648.69 crore in September – 2000. As on date DSE has 2800 listed companies including 1800 SMEs listed with it exclusively. “We would be giving single window services for the listing of the securities at DSE. This would help the DSE to stabilize its trading operation at the earliest and at the same time would enhance the liquidity of the DSE listed scrips”, said Sharma.
DSE has 379 members and plans to add 100 by the end of the current financial year. However, only 600 of the total listed companies with it have complied with their obligations. DSE offered a 60 per cent rebate to those who paid their arrears, and 300 companies took advantage. Now 900 companies are eligible for trading on the exchange.
Despite the absence of trading for the past seven years, DSE has a cash reserve of Rs 104 crore. Once it functions smoothly for six months, DSE would be allowed to foray into derivative trading.