VSE may offer NSE terminals from January

Stock brokers of Vadodara Stock Exchange (VSE) will be able to transact on the National Stock Exchange (NSE) shortly.

At present, the VSE offers Bombay Stock Exchange (BSE) terminals to its cardholders through a subsidiary Vadodara Stock Services Ltd.

"We are aware that transaction on the VSE are going to fall day by day even as more and more companies are delisting themselves from the VSE. We are already offering the BSE terminals to our members and we will shortly add NSE terminals through our subsidiary," said Prasad Akolkar, executive director, VSE.

VSE has forwarded a list of 25 members to NSE authorities to be registered as sub-broker and is expecting about 25-30 more members to become sub-brokers. The transactions on NSE from VSE are likely to kick start from next year January onwards.

The move to offer NSE terminals to its members is part of VSE's plan to expand its activity base to recover the income fall aroused out of voluntary delisting of companies from the regional stock exchange.

About 40 companies have delisted from the VSE in last 15 months and ten more companies are in pipeline to get delisted from the exchange.

Earlier, listing of shares on regional stock exchange, depending upon where company's registered office was located, was mandatory. The listing fee from these companies used to be main source of revenue for regional exchanges.

"Investors would get an option of NSE listed share prices while selling or buying shares. The NSE terminals would be beneficial for those who want to make arbitrage between BSE and NSE," said Jagdish Thakkar, a leading share broker.

VSE is also evaluating other options to sustain its income level. "We are seriously considering becoming member of one of the commodity exchanges after receiving nod from the Securities and Exchange Board of India (SEBI)," said Akolkar.

The exchange has received an approval for membership of National Stock Exchange (NSE) in recent past for cash segment and trading on subsidiary platform will commence shortly.

The VSE is also planning to strengthen its depository operations, which has over 20,000 members at present.

"We are improving operation skills of the staff members to serve our members. We hope to expand our membership out of Vadodara too by improving our services," said Akolkar.