Bse To Submit Fresh Plea On Bolt Expansion

The Bombay Stock Excjange (BSE) will submit a fresh plea to the Securities and Exchange Board of India (Sebi) for expanding BOLT to towns with a population of over 10 lakh. The exchange administration is collecting data for selecting those centres where BSE proposes to expand. Earlier, BSE had approached Sebi in late 1996.

BSE president M G Damani told Business Standard yesterday that the exchange members have been asked to file their applications by February 28. Previously, a total of 622 applications for terminals in 135 centres had poured in on BSEs invitation.

This time, according to Damani, the figure is expected to go up significantly as the cost structure of the project was not known then.

 

The cheap cost of expansion would mean that many more brokers would be lining up for expansion. Referring to the previous spate of applications, he commented, ...that was anticipation and this is reality. The BSE has already prepared a blue-print for BOLT expansion for its members across the country in all those centres which do not have a stock exchange.

Dubbed as BOLTNET stage 4, the project will be implemented by Hughes Escorts Communication on a turnkey basis. In a notice addressed to its members, the exchange has laid down the specific terms and conditions of the offer. The security deposit to be paid by a broker as a one-time charge for 1.8m very small aperture terminal (Vsat) will be Rs 2 lakh.

Additionaly, Rs 3,000 would be charged as a one-time charge for trader work stations (TWS) and software installations.

Support charges per Vsat and usage charge for each additional TWS will be billed on a monthly basis through the clearing house. The respective billings would be Rs 5,000 per VSat and Rs 2,500 per TWS. A standard depreciation @ 25 per cent per year or part thereof will be applicable on the security deposit in case a member wishes to return Vsat after usage.

In regions like Kerala, J&K and Assam (those areas in outer zone of INSAT satellite), a bigger Vsat of 2.4m antenna would be required. Members would be required to deposit an additional Rs 50,000 as security deposit.

The notice has specified that a members office would be considered as one only if it is rented/owned/leased/licensed by a BSE member. Further, the staff operating BOLT terminal must be on the brokers payroll and brokers should have effective control of such offices.