MP Stock Exchange may restart next fiscal

If all goes well, Madhya Pradesh Stock Exchange (MPSE), the third oldest bourse in the country, will resume functioning from the next fiscal, a decade after it virtually shut down.

"MPSE is likely to restart in April," a senior officer of the Exchange told PTI.

MPSE has signed agreements with National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) under section 13 of Security Contracts (Regulation) Act by virtue of which it is connected with NSE and BSE, he said.

"The Securities and Exchange Board of India (Sebi) has given its initial nod to the MPSE and the final approval from it is expected shortly," he added.

MPSE was formed in 1919 and 315 companies and 185 members were listed with it. But there has been no transaction in the last 10 years.

It has launched a fresh membership drive now.

Economist Jayantilal Bhandari said that there is a need to promote capital market in smaller cities, and the restart of MPSE is welcome.

However, he said, the Exchange will face challenges in the changed scenario.