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Post exit, SKSE to work as broking house

To bring new products including commodities and derivatives

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Vimukt Dave Mumbai/ Rajkot
Last Updated : Apr 07 2013 | 9:08 PM IST
After the Securities and Exchange Board of India (SEBI) finally accepted the exit of SKSE as a stock exchange, the SKSE officials will now focus on developing the broking subsidiary, SKSE Securities Limited through its trading activity.

“We will now develop SKSE securities, our subsidiary firm, as an independent broking house and also plan to introduce new products like commodity trading in it. Also we will try to increase our current product volumes including future and options, derivatives and currency," said Sunil Shah, director SKSE Securities.

Adding further Shah said, “We will soon convene the extra ordinary general meeting (EGM) to inform and discuss about our future plan. SEBI has permitted us to be active as trading platform but we cannot use the word ‘Stock Exchange’ in any of our activities.”

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At present, there are over 40,000 trading accounts in SKSE Securities, which has daily turnover of about Rs 25 crore. SKSE Securities, floated in 2001, is already working as broking house in Rajkot and Jamnagar but since the holding company, SKSE was facing actions from SEBI, it did not try to spread its network.

It may be noted that SEBI had derecognised SKSE in July 2007, on the grounds of vacuum at the top management level, inadequate infrastructure, broker's interference in the day-to-day operations of the exchange and the overall lack of interest of members to revive trading on the regional bourse. After the de-recognition, SKSEL had tried to merge with other regional stock exchanges, Vadodara Stock Exchange and Ahmedabad Stock Exchange but the concept did not work out. Later, SKSEL body decided to adopt the exit policy in November 2012.

“We had applied for the exit under SEBI’s exit policy for the regional stock exchanges and it has accepted finally,” said Chirag Dedakiya, general manager of SKSE.

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First Published: Apr 07 2013 | 8:30 PM IST

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