The Hindu Business Line : BSE on lookout for potential cos to trade on Indonext

INDONEXT, the separate stock trading platform for small and medium enterprises that was inaugurated by the Union Finance Minister, Mr P. Chidambaram, got off to a tepid start with only nine new companies registering since its launch earlier this month. Indonext started with 350 scrips that were moved from the B1 and B2 segments of the BSE.

Currently, the platform is netting a turnover of Rs 70-80 crore per day.

The BSE officials are trying to build a database of potential companies that can list on Indonext in order to improve the volumes. "We are arranging round table discussions with Regional Stock Exchanges (RSEs). Basically this is an idea that needs to be sold and people should find a business potential in Indonext," said Dr B.R. Prasad, Chief Economist and Chief General Manager, BSE.

The BSE is also undertaking an educational exercise for all market participants. "We are trying to induce brokers and sub-brokers to use this platform. We are also planning to conduct an analysts' conference which will help bring more awareness about stocks that are trading on Indonext," Mr Prasad added.

The RSEs are now in the process of screening companies that can be potentially listed on Indonext. They are also updating their information on the companies listed with them so that they can undertake a more specific exercise of inducing the qualifying companies to trade on the new platform.

Companies that have paid-up capital up to Rs 20 crore and trading in the B1 and B2 segments of the BSE can be moved to Indonext. Indonext is an initiative that is being promoted by the BSE to help bring liquidity into stocks of small and mid cap companies that are not being traded frequently on it. Interconnected Stock Exchanges of India and 18 RSEs are part of Indonext.

Participating RSEs can decide to include the securities of a company with paid-up capital above Rs 20 crore. Securities of those companies which have violated the provisions of the listing agreement and companies that have not paid listing fees would not be eligible for inclusion in IndoNext.

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