Boisl Fresh Plea For Membership

The Bombay Stock Exchange clearing house, BoI Shareholding Ltd (BoISL), has put in a fresh application to the National Securities Depository Ltd (NSDL) to join the depository as a participant. NSDL had earlier returned BoISLs proposal since it lacked the necessary Rs 1 crore net worth criterion.

C B Bhave, NSDL managing director, told Business Standard that the BSE clearing house had put in a fresh application once again, this time rectifying the earlier problem relating to net worth. However, NSDL is now examining the BSEs Trade Guarantee Scheme (TGS) to get a clear perspective before BoISL is granted membership. The TGS is also before Sebi, pending its approval.

Three brokers in Mumbai, Bhave said, had already opted to become depository participants (DPs) with NSDL, while two others from outside Mumbai had also joined up, one from New Delhi and the other from Coimbatore.

The entry of BoISL is significant since the National Stock Exchange is one of the promoters of the depository. This will mark the beginning of trading in dematerialised shares on BSE, which is also working on a plan to set up its own depository company.

BSE president M G Damani had earlier told Business Standard that the application for BoISL becoming a DP had been made since BSE did not lose out on business while its own depository is being put in place.

The application by BoISL is significant since the NSDL has NSE, BSEs arch rival in the turnover sweepstakes, as one of its promoters. However, business considerations have clearly had the better of BSE, which has put its members interests first.

The software for dematerialised trading to commence on BOLT, BSEs online trading network, is already being developed so that the dematerialised trading can commence at the earliest.