Financial Daily from THE HINDU group of publications
Wednesday, Feb 25, 2004
Financial Daily from THE HINDU group of publications Wednesday, Feb 25, 2004 |
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Markets
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Stock Exchanges MSE plans to enter NSE thru trading arm Sanjiv Shankaran
Chennai , Feb. 24 THE Madras Stock Exchange plans to shortly start a subsidiary company that would have trading rights on the National Stock Exchange. The development is expected to increase the value of an MSE stock broking card and thereby open a profitable exit route for its large number of inactive stockbrokers. The subsidiary company's aim would be to allow MSE brokers to trade on the NSE without individually buying the latter's membership rights, said Mr P.J. Mathew, MSE's Executive Director. The arrangement is expected to be ready by the middle of the year. The direct link to NSE, the largest stock exchange in the country, is likely to increase the value of an MSE broking card. "I expect at least Rs 10 lakh for a card as against a current market value of Rs 5 lakh," forecasts Mr Mathew. Once trading opportunities on the NSE are brought within the reach of MSE's brokers, Mr Mathew expected some inactive ones to look for business again. As for the rest, the development may provide the opportunity to say farewell to broking. Over the last few years, most of the equity trading has been concentrated in NSE and Bombay Stock Exchange. Once business shrank, many stockbrokers in regional centres like MSE became inactive. In MSE, for instance, only about 25 per cent of the 170 stockbrokers are active, according to Mr Mathew's data.
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