Indo-Next may fail: UP brokers

In the view of the Uttar Pradesh Stock Exchange Brokers' Association (UPSEA), if 'A' category shares are not listed on Indo-Next, the new platform will fail.

Neither the UP Stock Exchange, nor the other regional stock exchanges will become its members, in that case.

UP Stock Exchange Brokers' Association President Sushil Kanodia was reacting to the Securities and Exchange Board of India (Sebi) statement that from next year, the regional stock exchanges would be able to trade on Indo-Next, the new platform sought to be created for the regional stock exchanges.

Kanodia said without "A" category shares, the regional stock exchanges would not be able to get the volumes, because 80 per cent of the volumes were generated through trading in this category.

He said the rules being framed for the primary market and for the secondary market, like the capital base of Rs 50 lakh for the brokers of the regional stock exchanges as well, were meant to hurt the interests of the small traders on the stock exchanges and help the financial institutional investors (FIIs) and other large institutional investors.

The association has prepared its memorandum and will send it to all the members of Parliament, including those of the Left parties.