ISE looks to unload brokerage subsidiary

The broking arm had been set up to allow ISE members of to access nationalised exchanges by becoming its sub-brokers

Interconnected Stock Exchange (ISE), an exchange promoted by a dozen regional exchanges is looking to sell its broking arm ISE Securities & Services Ltd.

The broking arm, which has operations across 21 states, had been set up to allow ISE members of to access nationalised exchanges by becoming its sub-brokers.

The company operates from at least 80 locations with 456 registered sub-brokers and authorized persons on the National Stock Exchange and 280 on the BSE, according to figures from its website and latest annual report.

It recorded a total turnover of Rs.31,938 crore on the NSE and the BSE together during the financial year ending in March 2012.

It had total income of Rs.10.27 crores and a profit after tax of Rs.1.61 crore for FY12.
The exchange is looking to accept details from interested bidders till the end of March, according to a recent advertisement.  

“ISE intends to disinvest its stake from its subsidiary viz. ISE Securities & Services Ltd….interested entities are invited to forward their details…on or before March 22, 2013,” it said.

The subsidiary was established in 2000, on the basis of market regulator, the Securities and Exchange Board of India’s (Sebi’s) policy for revival of small stock exchanges. The policy allowed for these subsidiaries to take up membership of larger exchanges such as the NSE and BSE.