The Bombay Stock Exchange is taking its trading platform to Delhi and Kolkata in an attempt to tap the business generated in these cities, currently being routed to the National Stock Exchange.

BSE has set up a trading hub in Delhi last month and is in the process of establishing another in Kolkata.

The trading platforms are designed to provide cheap connectivity through leased lines and are expected to attract the better pie of business being generated by Delhi and Kolkata brokers.

S T Gerela, director, business development, said the move is aimed at luring Delhi and Kolkata brokers, who are contributing Rs 2,000 crore (Rs 20 billion) business to NSE each day, to the BSE fold.

Brokers of these two cities have no option but to trade on the NSE since Kolkata has no liquidity and the Delhi bourse is more or less closed.

"The business pattern of BSE indicates Mumbai brokers generate 80 per cent of BSE's turnover, while the balance is being earned from outside. The NSE pattern is heavily tilted in favour of non-Mumbai brokers. The Mumbai brokers contribute only 40 per cent business to NSE. Of the non-Mumbai locations, Kolkata and Delhi contribute nearly 30 per cent," he added.

The trading hubs also house investors' grievance cell to address complaints related to the stock exchange as well as companies, trading terminals and contingency pool.

The contingency pool does not only serve local brokers in case of emergency, it provides trading opportunity to a BSE  member.

For instance, if a Guwahati-based broker comes to Kolkata, he can trade from the contingency pool. A library is also being planned at the hub for education of the investors.

BSE is investing Rs 30 lakh (Rs 3 million) each for setting up hubs in two cities, he said adding that the business opportunities there will be much more than the investment.

In addition to setting up hubs in Delhi and Kolkata, BSE is also taking itself to other parts of the country.

It has recently established grievance cell in Kochi and offered BSE membership to Hyderabad Stock Exchange through the subsidiary route.

Experts are sceptical about the success of the BSE model on only one count: delay in conceiving the idea. One stock broker closely associated with NSE said BSE would have implemented the idea long before.

"Its a difficult task to take on NSE which has terminals in every nook and corner of the country," he said.