The Delhi Stock Exchange (DSE) is in talks with both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) for a possible merger but no decision has been taken as yet.
Other options being considered by the exchange to boost volumes include starting a commodity exchange by floating a new subsidiary.
"We are in talks with both BSE and NSE. The measure is among several other options that the exchange is considering in order to boost the volumes at the bourse. Other options include starting a commodity exchange by floating a new subsidiary," said DSE president Sudhir Joshi.
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Meanwhile, the Securities and Exchange Board of India chairman, D R Mehta, said that he had no objection to a merger of stock exchanges. "The issue was discussed during my meeting with the DSE officials in Mumbai and we have no objection if the two agree to merge," said Mehta.
"The survival strategy for the smaller exchanges should come from them only. We have not put any restriction on small stock exchanges. If they come out with strategies to boost their volumes, we have no objection," he said.
The exchange sources said that the response to their proposal would be considered by the BSE only after the visit of the Joint Parliament Committee team to Mumbai on July 11-12 in order to probe the stock market scam. DSE officials felt that its merger with BSE would be more compatible as the two exchanges worked on a similar pattern.
DSE sources said that a merger proposal had come from BSE last year but at that time DSE could not pursue the matter as it had already entered into a memorandum of understanding (MoU) with the Calcutta Stock Exchange (CSE) for a common trading platform. The payment crisis at CSE and other problems had rendered the MoU unworkable.
The trading volumes at DSE had plunged to a record low of Rs 16 crore on Friday from the levels of Rs 54 crore prior to introduction of the rolling settlement system.