Securities and Exchange Board of India has allowed the Delhi Stock Exchange members to trade on the National Stock Exchange as part of the efforts to bring liquidity and life to the ailing bourse, which has remained almost tradeless for the last two years.
"We have got the approval from Sebi. The members of DSE Financial Services, a subsidiary of the exchange, as well as other members can now trade on NSE also," Vijay Bhushan, director, DSE, told PTI in New Delhi on Friday.
With this, the members of DFSL could now trade on both NSE and BSE since the market regulator had already allowed DSE members to trade on Bombay Stock Exchange terminals through the subsidiary.
Having paid Rs 100,000 each, as many as 114 brokers have become members of DFSL, out of which 61 applied for the sub-brokership of BSE.
He said out of the 61 members, 41 were given permission and 11 were actively trading on BSE terminals.
Bhushan said by trading on both BSE and NSE terminals, the investors got wide option of trading as certain companies were listed only on BSE.
Asked how would the tie-up with NSE benefit the bourse, especially when DSE had made a detailed proposal to Sebi on demutualisation of separate ownership and trading rights, he said, "it could increase the value of trading rights", hinting that DSE could make some improvement in business from the present lows.
Bhushan said NSE had a vibrant stock profile of as many as 1,500 scrips, many of which were high-valued bluechip counters, and provided the much-needed liquidity for an average investor.
With business falling to zero for most part of the year, DSE members had been routing their business through BSE and wanted to become a subsidiary of the country's second largest bourse, BSE.
At one point of time, DSE authorities had also thought of merging with BSE. But with this option coming to a naught, the DSE had been pitching for "wider and broader" business modules.
He said very soon DFSL would convene a meeting of all those DSE members who have not yet become its members, to elicit their views on joining the subsidiary so that they could have wider trading horizon.
"If we could add some more members to DFSL, then business of the exchange (DSE) is expected to make some improvement," Bhushan said.
