Gujarat’s Ahmedabad Stock Exchange (ASE) plans to tie up with the country’s top equity bourse, the National Stock Exchange (NSE), say sources within ASE.
Officials from both ASE and NSE met in recent weeks and the draft memorandum of understanding (MoU) is being prepared. NSE officials said at least five regional stock exchanges have shown interest in a tie-up.
ASE is the second oldest stock exchange, established in 1894, and has over 300 stock brokers as its members. The exchange has nearly 500 listed companies, which have not been traded actively since 2004. ASE’s tie-up will be somewhat similar to Madras Stock Exchange’s with NSE, announced last month. The ASE brokers will be able to trade on the NSE platform in both cash and derivatives.
ASE members have also been approached for a tie-up by the Bombay Stock Exchange but they are most likely to go with NSE due to higher liquidity.
Also, it is likely that while capital adequacy norms of the members will be placed by ASE, the exposure and margin will be done in compliance with the rules of NSE.
Infrastructure Leasing and Financial Services (IL&FS) and leading Gujarati newspaper Sandesh hold a five per cent stake each in ASE. The other 90 per cent is held by 560 small shareholders.
The intrinsic value of ASE after demutualisation was Rs 60 crore, of which nearly half is the worth of its 6,000 sq yd land, located near the Town Hall at the prime location of Ashram Road.
The equity capital of ASE is Rs 7.47 crore. The face value of its share is Rs 1 and according to market players, these were sold at a premium of Rs 11 during demutualisation.
