Bse Sets Up 9-Member Derivatives Council

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The Bombay Stock Exchange has formed a Governing Council with elected members for its derivatives segment for 2002-03. The council is expected to kick start the pending issues facing the derivatives trading on the exchange.

Since only two nominations were submitted to fill in two vacancies for elected members, election by ballot on Tuesday, the 26th March, will not be held and the two nominees, Deven Choksi and Uttam B Bagri, have been declared duly elected.

The council has 9 members, of which three are public representatives, four are elected members and two BSE representatives.

Derivatives trading on the BSE has been plagued by poor volumes compared to its peer on the National Stock Exchange (NSE). Since the Sebi had directed March last year to disallow elected members on the Exchange's governing board and council, no major decisions were taken during the year.

However, this year with Sebi giving a clearance for elected members on the council, it is expected that the panel will come out with major initiatives for reversing the sagging trading volumes.

BSE's derivatives segment has been plagued by the sub-broker imbroglio. While NSE has a different structure across the country which has helped its growing volumes, BSE has not been able to push through volumes because of the sub-broker problem.