The UP Stock Exchange, at its recently concluded extraordinary general meeting, decided to sell 30 corporate membership cards at a floor price of Rs 7.5 lakh, which is down from the earlier tag of Rs 20 lakh. Similarly, 10 new individual membership cards will be sold by the bourse at Rs 5 lakh each, against Rs 10 lakh at which the bourse had attempted to sell the card earlier.
This is in line with the current rate of the card at the exchange. The minimum paid-up capital for corporates seeking a UPSE card has been reduced from Rs 20 lakh from Rs 50 lakh earlier.
The money realised will be used for paying up the bourses contribution to the interconnected stock exchange project.
The EGM also passed a resolution to take a standby guarantee from the Punjab National Bank or any other bank for its settlement guarantee fund (SGF).
D D Sarda, chief of UPSE, told Business Standard that UPSE has emerged as one of the bigger bourses in the country.
The plan is to take UPSEs volumes to Rs 150 crore a day or Rs 750 crore a week by September 1998, he said. This figure will rise further if the interconnected stock exchange system starts working by June 98, he added.
Sarda said that UPSE will seek the Securities and Exchange Board of Indias permission to start the modified carryforward system.
He said UPSE has fulfilled or is in the process of fulfilling the basic requirements for this such as going fully on-line, having a settlement guarantee fund, installing a twin-track trading system which bifurcates cash and forward transactions and setting a limit of Rs 20 crore transactions outstanding at any particular moment.
Sarda said that Rs 20 crore limit is more than sufficient for us, since even at the height of the Harshad Mehta-led bull phase, no broker had an outstanding of more then Rs 10 crore.
The bourse is also planning an additional trading floor in Lucknow, which is expected to kick-off in June 1998.
Sarda claims that since the onset of on-line trading, the UPSE has managed to increase its turnover. In the last week of January 1998, the turnover was at Rs 258.90 crore and this has risen to Rs 455.67 crore in the last week of March.
