NSE tied up with Six regional stock exchanges

NSE has tied up with six regional stock exchanges. The move will help bolster its volumes and turnover, given the fact that it accounts for close to 70% of the total turnover in the local equities market. Close to 4,000 companies are listed on the 22 RSEs in the country.
There is virtually no trading in all these exchanges, barring the Calcutta and the UP stock exchanges. Even there, business has slowed considerably. Some of these exchanges were in talks with the BSE as well for a tie-up. However, the norms stipulated by BSE were reckoned to be stringent. The six RSEs have chosen to have a tie-up with the NSE as the draft MoU came without any conditions, said the executive director of an RSE.
From the perspective of the regulator and policy managers, the move may be welcomed coming as it does when the future of these exchanges is being debated. A committee headed by Sebi member G Anantharaman had laid out the future course of action for these exchanges. The committee had said that the recognition of those RSEs that have the potential and willingness to participate in any alternate trading platform may be continued.
The tie-up will enhance NSE’s turnover. The daily turnover of NSE and BSE is close to Rs 25,000 crore. Of this, the turnover in the cash segment is around Rs 9,000 crore in the NSE and Rs 5,000 crore in the BSE. The balance Rs 11,000 crore is the turnover in the F&O segment. NSE accounts for almost 99% of the F&O segment turnover.

Get more information