Chennai Bourse Comes Out Tops With 90% Deliveries
Although the general perception seems to be that retail investors are disenchanted with secondary markets, the percentage of deliveries at the Madras Stock Exchange (MSE) indicates otherwise.
As per the figures released by the Securities and Exchange Board of India, MSE tops the list of all exchanges in India with 96.49 per cent delivery in terms of traded turnover.
In case of shares traded 92.92 per cent of the shares traded resulted in delivery. Since it is widely known that large institutions prefer to trade on the BSE or NSE, it seems but natural that retail activity is more pre dominant on the MSE. Low trading volumes have nothing to do with delivery percentage considering the fact that Calcutta Exchange with nearly 20 times the turnover has a figure of less than 2 per cent.
MSE has clocked an annual traded turnover of Rs 1228.30 crore for the whole of 1997-98. The Bombay Stock Exchange and National Stock Exchange pale in comparison with delivery figures of 12.73 and 15.97 per cent respectively of the total traded turnover at these exchanges.
The Coimbatore Stock Exchange has emerged as the speculators paradise with just 0.57 per cent of the total traded turnover throughout last year, actually resulting in delivery. However the BSE and NSE put together account for 90 per cent of the total delivery figures all over the country. NSE tops the list, accounting for 65 per cent of the delivery based trading throughout the country. BSE comes next at 24.2 per cent.
In terms of number of shares traded, 28 per cent of the shares traded on the BSE have resulted in delivery. This is higher than the NSE where only 16.08 per cent shares throughout the year have been delivered. Although this indicates greater retail participation, sources feel that this could also be due to higher number of scrips listed on the BSE. The MPSE has created a new record with only 50,000 shares of the total 7.08 lakh shares traded last year resulting in delivery. A positive development in the operations of stock market has seen the decline the decline in the ratio of bad deliveries to net deliveries. The measures taken by the Sebi through the issue of guidelines for good/bad deliveries and setting of bad delivery cells at the stock exchanges have contributed to the improvement of the system.