Bse Card Goes For Rs 75 Lakh, 30 Sellers Queue Up

Several factors like low brokerage charges, increasing presence of broking houses from foreign institutional investors (FIIs), growth of the National Stock Exchange (NSE), the delay in BSE getting clearance for on-line trading (BOLT) expansion plan, and the lack of sops from the Centre for the capital markets have been cited as reasons for the declining value of the BSE card.

Bourse officials could not confirm the deal as details had yet to be made available to them, sources said.

According to sources, there are at least 30 to 40 sellers of the BSE card but no other deal has been struck at the ruling market price, which is estimated between Rs 80 to 90 lakh.

 

Exchange sources also added that buyers could be found for Rs 90 lakh. This is the value the BSE card held during the pre-securities scam days in 1990-91.

Broking sources confirmed that the last week's deal was of a dormant BSE card held by a Calcutta-based broker. While the initial deal through a broker was agreed upon for Rs 72 lakh, the buyer is understood to have drawn a sum of nearly Rs 10 lakh more through further negotiations.

For the first time in several months, smaller broking houses at the exchange are actually exploring options for an alternate line of business which could be more lucrative. According to marketmen, with the lower brokerage levels and the growing uncertainty over the payment crisis at the BSE, the fear of a shakeout is real.

The sliding card price is, however, not restricted to the BSE alone, as the ticket values at the major bourses like the Delhi Stock Exchange and the Bangalore Stock Exchange have fallen in recent months.

Several related factors like high interest rates, growing political uncertainty and the delay in the disinvestment programme of public sector companies have all contributed as negative influences on the markets.

According to a source, the investment interest towards equity could come around only if the inflation levels move higher by 2-3 percentage points.

The finance minister had announced there would be a special package to revive the capital markets. While the review of the minimum alternative tax took place and certain sops in capital gains tax for partnerships was announced, very little has been done to directly boost the trading sentiment for the capital markets or the broking community. If the markets are ill (which they are)....they must be treated at the right stage, before it is too late,