The Securities and Exchange Board of India (Sebi) has asked smaller stock exchanges to be alert over price movements in small scrips as these first gain ground on the smaller stock exchanges. The regulator has also asked stock exchanges to be alert particularly with regard to Infotech stocks to ensure that no manipulation takes place.
Sebi has also initiated the process of introducing commodity futures at small bourses and a small group comprising of Sebi, Forward Markets Commission and small exchanges representatives will be set up. The regulator has also liberalised the process of expansion of memberships by a stock exchange. A stock exchange would no longer need Sebi approval to expand its membership base.
At a meeting convened by Sebi on Monday, small stock exchanges in the country are believed to have pointed out that there were certain hitches in the process of them taking membership of larger exchanges after floating a subsidiary. They said that the Bombay Stock Exchange (BSE) norms had put certain stringent conditions on them even though the bourse had lowered the value of the card to Rs 50 lakh as against the market price of Rs 2. 50 crore. Six stock exchanges have already received National Stock Exchange's nod for becoming members through their subsidiaries.
Sebi also decided to allow the members of the subsidiary of the smaller stock exchange to bring in their deposits in the form of both cash and bank guarantees a
