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Delhi Stock Exchange Bangalore Stock Exchange Trade Regional stock exchanges National Stock Exchange Ltd. Sundaresha Subramanian and Deepti Chaudhary. Sun, Jul 26 The Delhi Stock Exchange building. Until the early s, India had 21 regional stock exchanges, but following the entry of the National Stock Exchange, most of them fell by the ways.

Until the early s, India had 21 regional stock exchanges, but following the entry of the National Stock Exchange, most of them fell by the wayside.

Delhi Stock Exchange Limited: Private Company Information - Bloomberg

Both are offering incentives to lure back companies and traders to what were once strong regional exchanges. Until the early s, India had 21 regional stock exchanges, but following the entry of National Stock Exchange Ltd NSE , which introduced satellite-linked terminals, most of them fell by the wayside.

The Bangalore Stock Exchange has its systems open but none is operating; instead, its brokers trade on the NSE and BSE. Last week it advertised for a new executive director.

DSE has begun talks with other regional exchanges that have shut down to bring members and companies of these exchanges into its fold. Three regional exchanges, Ludhiana Stock Exchange, Jaipur Stock Exchange and Ahmedabad Stock Exchange, have tentatively accepted the proposal, said Brij Kishore Sabharwal, a member of the DSE governing board.

Mint could not independently verify the claim. DSE is offering various schemes to other regional stock exchanges, brokers, delisted companies and technology partners, to restart trading. The infusion of fresh capital through a demutualization scheme in has helped the exchange financially and strategically. Others who now hold stakes in DSE include Passport Capital Llc, a US-based private equity fund; Bennett, Coleman and Co. Ltd BCCL ; Television 18 Ltd ; New Delhi Television Ltd ; and realty firms such as Parsvnath Developers Ltd and Omaxe Ltd.

Welcome to Delhi Stock Exchange

BCCL, publisher of The Times of India and The Economic Times , competes with HT Media Ltd, which publishes the Hindustan Times and Mint. Competing with the established exchanges will be difficult for any new entrant, brokers said.

Even BSE, despite its high visibility, is struggling to find its footing in the derivatives market and recently hired Madhu Kannan as chief executive officer and some derivatives specialists as well to win derivatives market share. According to Anil Bagri, alternate president, Association of National Exchange Members of India, a body of brokers, differentiation will be key. If you look back, new exchanges have done well when they start with a new product line.

It would lead to better service and newer products.

Delhi Stock Exchange

Both DSE and Bangalore are significantly lowering barriers to entry by offering sops to traders and companies. DSE, for example, is making special offers to trading members and companies. Many of the 2, companies originally listed on the exchange have been delisted for non-compliance over the past few years after trading volumes fell.

This may sound like dilution of regulatory norms, but H. The minimum net worth criterion for trading member has been set at Rs13 lakh, a fraction of the Rs1 crore that BSE requires, and the Rs3 crore that NSE asks for. Of that amount, Rs12 lakh is in the form of refundable deposits and are allowed to be adjusted against margin requirements. To woo small firms for listing, Bangalore Stock Exchange has kept the minimum paid up capital requirement at Rs3 crore, lower than the Rs5 crore that a company requires to get listed on BSE and Rs10 crore for NSE.

The listing fee at the Bangalore Stock Exchange too is much less than what NSE and BSE ask for. The new DSE could explore the space where BSE and NSE are not present in, said Bagri, pointing to smaller companies that only have equity capital of Rs1 crore or Rs2 crore.

Hundreds of companies that were earlier listed on the regional exchanges, and trading members brokers are no longer able to access the capital market due to the stringent entry barriers.

It is this space that DSE is planning to cater to. In London, for example, the alternative investment market, a division of London Stock Exchange, provides a separate platform for small companies and even start-ups to raise equity capital.

DSE has partnered with International Business Machines Corp. MCX Stock Exchange Ltd, or MCX SX, a Financial Technologies subsidiary which currently operates in the currency derivatives segment, has also applied to capital markets regulators for permission to launch equities trading. But whether the new platform will bring companies back remains to be seen.

Some big brokers are also not convinced yet. Vikram Rathi, executive director of New Delhi-based brokerage BLB Ltd, and who was a member of DSE until , said he will wait and watch.

Once the critical mass is attained, then the exchange will pick up.

Delhi Stock Exchange - Wikipedia

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