Focus on niche segments would bring growth to regional stock exchanges

One way to look at this is that RSEs could focus on high tech, cluster industries such as textiles, to list members in the sector

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The small and regional stock exchanges (RSEs) will have more opportunity for growth if they differentiate themselves by focusing on niche segments, said Ashishkumar Chauhan, managing director and CEO of Bombay Stock Exchange.

Chauhan, who was here as the Guest of Honour in the launch of the Tamil Nadu chapter of Dalit Indian Chamber of Commerce and Industry (DICCI), said, "Some of them have to find out and make a niche segment to differentiate itself from others. Otherwise it would be commoditised."

There is enough scope for the regional exchanges, if they could look at niche segments for growth. One way to look at this is that they could focus on certain industries such as high tech, or cluster industries, such as textiles, to list the members in the sector. Meanwhile, the exchanges also has the role of a regulator, which makes compliance a high priority for the companies listed in those exchanges, he added.

Chauhan's comment comes at a time when the regional stock exchanges are facing various challenges including the decisions of the Securities and Exchange Board of India (Sebi) prescribing exit route to many of them. Some of exchanges and stock brokers affiliated to them are fighting against these decisions for their existence.

As reported earlier, Uttar Pradesh Stock Exchange Brokers Association is planning to make a representation to the Prime Ministerial Candidate Narendra Modi against Sebi's Regulation for Regional Stock Exchanges . Ahmedabad and Vadodara Exchanges have already approached the Court in this regard.

Speaking about the activities of BSE, Chauhan said that it has already achieved eight to 10% market share in the currency derivative trading, which it has launched by the end of November, this year. According to earlier reports, this is expected to allow Rupee pair trading in Dollar, Euro, Pound and Yen.

It would also be launching interest rate futures trading platform for 10 year government bonds. He added that this would open up new areas for the investors in the country.