Indore based Madhya Pradesh Stock Exchange is expected to make pan India presence by organizing roadshows and awareness programmes. The stock exchange has augmented its membership by another 100 during the last few months.
After joining hands with National Stock Exchange (NSE) last year and with the Bombay Stock Exchange (BSE) February this year, MPSE has become the only regional stock exchange in India to provide independent trading platform for its members. The MPSE made an alliance with NSE and BSE under Section 13 of the Security Contract Regulation Act , 1956, which permits stock exchange members to do contracts and options in securities in state or regional stock exchanges. Established in 1919 in Indore, Madhya Pradesh Stock Exchange (MPSE) has 315 listed companies (non-compliant) and 260 members but the trading was in a hibernation mode. “We have added new 100 members during the last few months.
We have now presence across 16 states and we are expecting to add members from across the nation by March 2013,” said Ashish Goyal , a shareholder in MPSE, and added, “After the tie-up with NSE and BSE, scrip listed at MPSE will be traded in “permitted category”. MPSE has added its members in Uttar Pradesh, Punjab, Rajasthan, Karnataka, Himachal Pradesh, Haryana. It has organized roadshows and awareness programmes to educate those potential retail investors who shy away from share market. “We have not only added new members but we expect trade volume to touch Rs 500 crore by March 2013 from existing Rs 80-100 crore.” Obtaining a membership at MPSE is easier and cheaper than BSE and NSE. The fee is Rs 200,000 against few lakhs charged by BSE and NSE and stringent compliance norms. MPSE is the first regional exchange to enter into agreement with both the stock exchanges and first in India to get Sebi ’s approval when it allowed regional exchanges to come out of hibernation. Prior to this trading at the MPSE was allowed through its subsidiary. “Now MPSE members can issue contract notes in their names and can even appoint sub-brokers like those issued by BSE and NSE members,” Goyal said.