ISE Securities and Services Ltd, subsidiary of the Inter-connected Stock Exchange of India, will pick up membership in the derivatives segment of the National Stock Exchange (NSE), once the Securities and Exchange Board of India (Sebi) allows sub-brokers to participate in the derivatives market.
The ISE management said it was also contemplating the Bombay Stock Exchange's offer for membership in the derivatives segment.
The Sebi is planning to allow sub-brokers into the derivatives segment as it will expand the reach to retail investors and will thus lend depth to the segment.
To date, only trading-cum-clearing members and trading members are allowed to participate in the derivatives segment. While trading-cum-clearing members require a net worth of Rs 3 crore, trading members should have a net worth of Rs 10 to 25 lakh.
The opening up of the derivatives segment is being undertaken in phases in order to bring stability and understanding in the trades and among the players.
Officials with ISE said, "Just as the sub-brokers provide the reach in the equity market, they will add value to the derivatives market also once they are allowed."
Meanwhile, the daily turnover at ISE Securities and Services Ltd has fallen from Rs 150 crore to Rs 35 to 40 crore, said the officials. ISE is attempting to get into areas where it can offer better services to the customers as the market has moved into the rolling segment. It has also decided to become a depository participant and offer post-trading activities.
