Fise Wants Sub-Brokers To Be Se Members

The Federation of Indian Stock Exchange (FISE) has proposed that sub-brokers of the subsidiaries of regional bourses should be treated as a trading member and the subsidiaries as clearing member of the exchange.

In the last few months, several regional stock exchanges have become members of the National Stock Exchange and the Bombay Stock Exchange. FISE has also decided to approach the Securities and Exchange Board of India (Sebi) to convene a meeting of the committee constituted to look into the issue and come up with a final view.

FISE, which represents 20 stock exchanges in the country, has also expressed concerns on the base capital locked with regional exchanges.

At its annual meeting, FISE said " In view of dwindling volumes and negligible turnover in most regional exchanges, there was a strong justification for lowering the settlement guarantee fund size at the exchanges. It has also proposed that members of regional exchanges who were not interested in trading in local exchanges should be permitted by Sebi to withdraw the base minimum capital with their exchanges.

FISE has also proposed participation of sub-brokers of regional bourses in futures and options since they are already allowed in the equity segment. This move will spur growth in futures and options across the country as the regional exchanges have a vast network of registered intermediaries. FISE members were also of the opinion that the Sebi and Reserve Bank of India should permit subsidiaries of exchanges to enter the retail debt market.