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MSE plans depository centres in TN

Raja Simhan T.E.

CHENNAI, Feb. 19

WITH trading volume through the Madras Stock Exchange (MSE) reducing considerably in the recent times, the exchange is expanding its reach to other centres in the State, targeting the large number of investors living outside Chennai.

As part of this plan, the exchange will extend its depository services to other important centres in the State. The exchange is a depository participant (DP), having 24-hour connectivity with both National Securities Depository Ltd (NSDL) and Central Dep ository Services Ltd (CDSL).

Mr R. Pattabiraman, General Manager (Market Operations), MSE, told Business Line that depository centres were planned in and outside Chennai. In the long run, each centre had the potential to become a profit centre on its own.

Further, investors in other centres, could avail lower brokerage fee of 0.05 per cent for delivery-based transactions offered by the exchange, compared to 20-25 paise charged by private broking houses.

According to him, the Bombay Stock Exchange (BSE) is planning to establish a Southern Regional Centre/Investors Service Cell at the MSE premises. This would facilitate the MSE and the BSE to jointly execute projects towards investors, such as the investo rs education programme, development of investors service centre and improved complaints redressal systems.

The support of BSE's regional centre at the MSE would also help the exchange to spread its multi-trading facility, as well as depository services to all over the State in an `aggressive' manner, he said.

The exchange also planned to introduce borrowing and lending securities scheme (BLESS), an improved version of the carry forward system at the BSE. In the BSE, along with the weekly settlement system, trading in daily rolling settlement is also available .

There present trend in Madras Stock Exchange Financial Services Ltd (MSEFSL), a 100-per cent MSE subsidiary, reveals an interest among investors to trade in rolling settlement system, he said, adding that the exchange was exploring such a possibility.

MSEFSL, which went live on September 14, 2000, has a BSE membership, and planned to also obtain the National Stock Exchange membership too, he said.

Currently, only 35 members of the MSE have availed the multi-market trading facility, and the number is expected to reach 100 shortly. The average daily trading volume through the system is around Rs 6 crore, which would reach Rs 35-50 crore, once connec tivity was established with all the MSE members, he said.

The increased activity in MSEFSL is also helping the exchange to increase its trading volume, and arbitrage facility for its member-brokers.