MP stock exchange makes its presence felt
The Indore-based Madhya Pradesh Stock Exchange, which has augmented its membership by another 100 during the last few months, expects to make its presence felt across the country as it organises numerous roadshows and awareness programmes.
After joining hands with the National Stock Exchange (NSE) last year and the Bombay Stock Exchange (BSE) in February this year, MPSE has become the only regional to provide independent trading platform for its members.
MPSE was able to strike an alliance with NSE and BSE under Section 13 of the Security Contract Regulation Act , 1956, which permits stock exchange members to do contracts and options in securities in state or regional stock exchanges.
Established in 1919 in Indore, it has 315 listed companies (non-compliant) and 260 members but the trading was in a hibernation mode.
“We have added 100 new members during the last few months. Now we have a presence across 16 states and are expecting to add members from across the nation by March 2013,” said Ashish Goyal, a shareholder in MPSE, who added, “After the tie-up with NSE and BSE, scrip listed at MPSE will be traded in “permitted category”.
MPSE has added its members in Uttar Pradesh, Punjab, Rajasthan, Karnataka, Himachal Pradesh, Haryana. It has been organising roadshows and awareness programmes to educate those potential retail investors who shy away from the shares market. “We have not only added new members but we expect trade volume to touch Rs 500 crore by March 2013 from the existing Rs 80-100 crore.”
Obtaining a membership at MPSE is easier and cheaper than BSE and NSE. The fee is Rs 200,000 against the few lakhs charged by BSE and NSE, which comes with stringent compliance norms.
MPSE is the first regional exchange to enter into an agreement with both the stock exchanges and first in thecountry to get Sebi ’s approval when it allowed regional exchanges to come out of hibernation. Prior to this, trading at MPSE was allowed through its subsidiary. “Now MPSE members can issue contract notes in their names and can even appoint sub-brokers like those issued by BSE and NSE members,” Goyal said.