BhSE to trade with BSE

With a view to supplement its income, the Bhubaneswar Stock Exchange (BhSE) plans to take up various commercial activities like direct trading with the Bombay Stock Exchange (BSE), introducing depository account and launching of 3 months’ certificate courses on stock market investment.

The stock exchange is in discussion with the Securities and Exchange Board of India (Sebi) and Bombay Stock Exchange (BSE) for facilitating direct trading of BhSE members in BSE.

It hopes to sign a memorandum of understanding (MoU) in this regard soon, said the sources.

BhSE has also approached the Bombay Stock Exchange (BSE) promoted depository service provider Central Depository Services Limited (CDSL) for providing depository account.

Since, CDSL wants Bhubaneswar stock exchange to increase its net worth, the stock exchange has decided to go for valuation of its shares within next few months.

“We will go for valuation of our shares in next 1 to 2 months so that additional equity can be offered to public even in the shape of rights issue. This will partly improve the net worth of BhSE and help it in taking up new commercial activities”, Debaraj Biswal, chief executive officer (CEO), Bhubaneswar Stock Exchange told Business Standard.

He said, the stock exchange is exploring the possibility of association with national commodity exchange, energy exchange and the proposed Small and Medium Enterprise (SME) exchange.

The capital market regulator, Sebi is now working on the SME exchange to provide working capital to small and medium enterprises (SMEs). BhSE hopes to play an important role in the mobilisation of funds for the Orissa SMEs, he added.

Meanwhile, the stock exchange plans to embark on massive investor awareness campaign in rural and semi-urban areas with the help of Sebi. In the coming days, it will organise investors’ awareness programmes in Bhubaneswar, Cuttack and other major commercial centres like Berhampur, Rourkela and Angul among others.

As a forward looking measure, BhSE has already tied up with about 10 management schools to acquaint the students with the basics of investment in the stock market. It has inked an agreement with the Centurion Institute of Management in this regard.

The stock exchange plans to have a training hall at the corporate office to impart training to the students, senior citizens and prospective investors. Besides, a 3 months course is being planned to educate the youths and brokers working as advisors to investors in equity market.

“We are working with Sebi, BSE and the Inter-connected Stock Exchange of India for developing the modules”, Biswal added.