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| UP Stock Exchange to offer depository services soon |
| Vishnu Pandey / New Delhi/ Kanpur Apr 16, 2009, 00:31 IST |
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The Uttar Pradesh Stock Exchange (UPSE) is all set to assume the role of a multifunctional exchange following Securities and Exchange Board of India (Sebi)'s nod for opening a depository account last month.
UPSE director KD Gupta told Business Standard that the exchange’s prime target was to begin depository and related services as soon as possible, apart from providing a platform for currency futures and hedging, mutual fund services and share underwriting in a phased manner.
“We expect the entire process to complete within one year, hopefully,” said Gupta. The exchange had applied for depository services last September.
The UPSE board of directors has prepared a blueprint to achieve the expansion targets. The officials are also in talks with the MCX-SX for providing currency-related services to over 5,000 exporters and importers in the city. The scope of currency trading here is immense due to the existence of a large number of leather and plastic products exporters, who frequently need currency hedging and futures services.
“We are also holding negotiations with the National Stock Exchange (NSE) for its membership,” Gupta said.
Sebi has raised the minimum eligibility criteria for starting depository services to Rs 1.5 crore from Rs 1 crore. UPSE had floated a subsidiary, UPSE Securities, for obtaining the Sebi nod.
The stock exchange would have to reduce its shareholding in UPSE Securities from the present 100 per cent to 49 percent for obtaining a green signal for IPO underwriting privileges from Sebi.
“We have also been offered to become a part of the alternative trading platform being conceptualised by the NSE and the Delhi Stock Exchange,” said Gupta.
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