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Rediff News  All News  » Business » Bhave raises UPSE's hopes for NSE membership

Bhave raises UPSE's hopes for NSE membership

March 24, 2008 11:22 IST

The Uttar Pradesh Stock Exchange may get permission from the Securities and Exchange Board of India for taking membership of the National Stock Exchange as C B Bhave, new Sebi chief, seems to be cooperative on the moves that had earlier been opposed by his predecessor.

M Damodaran had, almost eight months back, rejected the application of the Madras Stock Exchange for a tie-up with the NSE. 

But after Bhave took over, this permission has been granted. Thus the MSE has become a member of the NSE, where it will have to pay Rs 3 crore (Rs 30 million) and many brokers will be able to work on the NSE platform.

The UPSE had made a similar application almost two years back. But Sebi had not taken any decision on it. It was thought that the permission will be withheld.

"Now, after permission to the Madras Stock Exchange is granted," says KD Gupta, administrator, UPSE, "We may also be given the go-ahead."

Asked about alternate platforms of trading, he said the proposal about coming together of Delhi, UP, Ludhiana, and Jaipur stock exchanges was only mentioned once in a meeting and has not been mentioned even once in the last four months.

Besides, the Delhi Stock Exchange is also thinking of other combinations. Some other platforms which are being thought of may bring together Sidbi, IIBI, DSE and others. But all this is under discussion, he said.

Asked about the reports of Nasdaq taking interest in investing in the regional stock exchanges, Gupta said: "Nasdaq does have a person in India, but he is not authorised to take a decision. He can only come and talk .Therefore, there is no way any stock exchange will or is likely to have any tie-up with Nasdaq."

Gupta said creating a trading platform was not easy. He added: "It is not just coming together of the various stock exchanges. Any third platform can only come about if its work is exclusively earmarked. For instance, if it said that all shares whose paid up capital is Rs 20 crore (Rs 200 million) or less shall be exclusively listed on the third platform, you will find that large number of buyers will be available for stake.

Before that happens, nobody will come and no alternative platform can get created."

Vijay Chawla in New Delhi/Kanpur