DSE, BSE stock exchanges look forward to win back firms

The outdated Delhi Stock Exchange (DSE) is attempting to make a comeback as is the Bangalore Stock Exchange, which has 340 members but hasn’t seen any trades in the past five years. Both are striving to lure back the companies and traders to what were once strong regional exchanges.

Jignesh Shah, FTIL,

Until the early 1990s, India had 21 regional stock exchanges, but following the 1994 entry of National Stock Exchange Ltd (NSE), which introduced satellite-linked terminals, most of them fell by the wayside.

Asia’s oldest bourse; The Bombay Stock Exchange (BSE) which is 124-year-old adapted computerized systems and survived, but failed to spot the opportunity in equity derivatives, in which NSE now has a virtual monopoly.

According to Anil Bagri, alternate president, Association of National Exchange Members of India, a body of brokers, differentiation will be key. “If the new exchange is going to offer the same products, it’s going to be an uphill task to compete with NSE and BSE. If you look back, new exchanges have done well when they start with a new product line.”

“Competition is good in any business activity. It would lead to better service and newer products. But such competition should not lead to players entering the game with an objective of capital appreciation,” said an official from a Mumbai-based exchange.

Financial Technologies executive said, “We are providing technology for clearing and settlement platform, like we provide to many other exchanges around the World.” A Financial Technologies subsidiary, MCX Stock Exchange Ltd, or MCX SX, which currently operates in the currency derivatives segment, has also applied to capital markets regulators for permission to launch equities trading.

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