Bse To Boycott Meet On Inter-Connectivity

The main factors which have prompted this move is that the BSE has preferred to move off on its own, seeking strategic tie-ups with some regional exchanges. Also, there is a view among BSE insiders that the FISE is still essentially a pressure lobby against the BOLT expansion plan.

According to sources, the FISE had invited the BSE to come into their fold and aid inter-coordination between the SEs. The BSE president M G Damani and executive director R C Mathur had been approached to attend the meeting and the move was to woo the larger exchanges into the group to ensure the survival of the federation.

 

One of the key issues to come up for discussions is the inter-connectivity plan between the stock exchanges. Talks would also include the proposed tie-ups between the BSE and some exchanges like Ludhiana, Kanpur and Hyderabad, sources said.

BSE has, however, decided not to attend the meeting and according to a senior BSE official seeking anonymity, the entire inter-connectivity plan runs the risk of not taking off as the commercial considerations of each stock exchange has to be kept in mind.

Senior FISE members, including the Vadodara Stock Exchange executive director, Joseph Massey, said that the inter-connectivity plan will take some time to come about. While seven stock exchanges have gone on-line, another eight are set to commence screen-based trading over the next two months.

There is little clarity on the inter connectivity plan....further the current scenario is of a dog-eat-dog. You have to look mainly at the commercial considerations, rather than limit oneself to see how the smaller regional stock exchanges are to survive, a source said.

The FISE had formed initially as a group without the support from the leading stock exchanges, BSE and the National Stock Exchange. According to a BSE source, the exchange would have no hesitation in joining a federation where the need was to strengthen stockmarket representation on crucial issues.

According to FISE insiders, certain amount of friction has come about at the organisational level. With some smaller exchanges expressing their willingness to trade on the BOLT network, the signal was to woo the BSE, wherein even with a tie-up with a larger exchange, the regional exchange would remain within the fold of the FISE.