Dalal Street firms fancy NSE listing

Promoters of companies listed on the Bombay Stock Exchange (BSE) are making a beeline to list their equity shares on the National Stock Exchange (NSE) as well.

Since the beginning of the calendar year, 54 BSE listed companies sought listing on the NSE. Following the rush, the average number of companies trading on the NSE has risen from 858 stocks in October 2005 to 948 now.

Gati, JM Financial, Dolphin Offshore, Ansal Housing and McNally Bharat listed their shares on the NSE in last two days and 18 other companies have got listed in last two weeks on the exchange.

In terms of trading volumes, NSE is the largest exchange in the country, accounting for more than 65 per cent of total daily turnover of the two bourses.

The factors prompting a listing on the NSE are liquidity and marketability of securities as well as effective management of trading. "Having a parallel listing on the NSE provides the companies with a broad access to investors and depth and liquidity," said a broker.

Under the listing norms, companies with a paid-up capital of over Rs 10 crore and average market capitalisation of over 25 crore in the last one year are eligible for listing on the NSE. The listing rules are not applicable to public sector companies and banks.

There are about 300 companies with an equity capital of over Rs 10 crore and one year average market capitalisation of over Rs 25 crore.

NSE is the first exchange in India that have electronic interface and has over 40,000 terminals spread over 1000 cities. Its trading terminals are located across the length and breadth of India.

Trading volumes in the equity segment on NSE has grown rapidly in last few years, with average daily turnover increasing from Rs 17 crore in 1994-95 to Rs 6,253 last year. The exchange had reported a turnover of Rs 1,569,556 crore in the equities segment in 2005-06.