LSE in talks with MCX-SX for setting up stock trading platform

With an intention of reviving stock trading, Ludhiana Stock Exchange (LSE), a regional bourse, is in talks with MCX Stock Exchange (MCX-SX) for setting up a separate platform for trading in equity shares of small and medium enterprises.     

"We are holding discussions with MCX-SX for setting up separate trading platform in LSE in order to commence trading in stocks of small companies having authorised paid up capital below Rs 25 crore," LSE Vice-Chairman PP Kansal said adding the modalities of the arrangement was still to be worked out.     

Although the commencement of trading would be subject to the approval of market regulator Sebi, this move is expected to revive trading in stocks on the LSE which was stopped in 2001 after the regional stock exchanges lost business to National Stock Exchange and Bombay Stock Exchange.     

"Our main motive of this initiative (arrangement with (MCX-SX) is to again restart stock trading here," he asserted.     

At present, members of LSE are working as sub-brokers of LSE Securities (a subsidiary of LSE) for carrying out trading in NSE and BSE.

Besides benefiting listed firms, the commencement of trading in stocks of regional companies would unlock the value of equity shares which have been held by investors for the last several years.     

In addition to it, the market capitalisation of regional companies, which remained blocked due to closure of equity trading at regional stock exchanges, would get impetus with the start of trading, said a stock analyst.     

There are 328 companies which are on the LSE.     

Kansal further said that in another initiative of starting stock trading,

Federation of Indian Stock Exchanges (in which regional stock exchanges are members) is going to hold a meeting on June 13 in Indore.     

"In this meeting, regional stock exchanges will dwell upon the possibility of setting up a separate trading platform for restoring stock trading," he said.