Initiates process to launch own trading platform

The Madras Stock Exchange is exploring the possibility of consolidation through merger of like-minded regional stock exchanges. A few exchanges have already evinced interest of merging with MSE, said S. Venkateswaran, Member, Advisory Committee, MSE, which is one of the oldest regional exchanges in the country.

He did not name the exchanges that have evinced interest in the merger. According to exchange official, Bangalore and Pune stock exchanges are in talks for possible merger.

Infrastructure ready

The MSE is also reviving its own trading platform, which was suspended in 2004. The platform is likely to be launched on the Pongal festival day in January, he told newspersons.

The exchange has already procured the necessary software and hardware for this purpose. It has also set up both far and near disaster recovery sites. The exchange is awaiting the SEBI clearance, he said. The SEBI has sought certain clarifications from the MSE, to which the exchange will respond soon.

In MSE there are nearly 1,200 companies listed on the exchange. Of this, nearly 600 are not listed with either the BSE or the NSE. By reviving the trading platform, investors will get liquidity for their holdings. Similarly, once the approval is received, the exchange may get the status of designated stock exchange, which will help new and existing small companies to raise capital, he said.

According to V. Nagappan, Member, Advisory Committee, MSE, companies such as Polaris, Orchid, Aban group and Kalpathi Investments, hold 64 per cent share in the exchange. The balance is held by trading members of the exchange.

Net worth Easy

On the recent SEBI guidelines, which has stipulated that regional stock exchanges should have a net worth of Rs 100 crore and an annual turnover of Rs 1,000 crore, Venkateswaran said, the exchange would easily achieve this as 60 scrips that are trading under the permitted category on the NSE platform, achieved a turnover of Rs 9,479 crore last year.

Meanwhile, the exchange is to celebrate Platinum Jubilee on Saturday with Tamil Nadu Governor K. Rosaiah to be the chief guest.

raja.simhan@thehindu.co.in

(This article was published on September 26, 2012)
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