PUNE, June 23: The Pune Stock Exchange, which has sent a draft MoU to BSE for the implementation of BOLT, is confident that 30 PSE brokers will eventually opt for the facility although at present only 17 have applied, J N Gupta, president, PSE, said.

The PSE council had already approved the implementation of BOLT which will require PSE members to pay about Rs 20,000 for connectivity with BSE, while broker work stations will cost Rs 50,000. Brokers will also have to pay a recurring monthly charge of Rs 2,000, P L Kadlaskar, executive director of PSE, said, admitting that PSE would earn no revenue on this.

Once BSE signs the MoU, the PSE will place orders for the hardware so that Pune brokers can expect to begin trading on BOLT within the next few months.

Gupta said that with BOLT expansion, PSE had asked BSE members not to set up branch offices in Pune. Given the state of the markets, he was confident that an investment of Rs 6 lakh required to set up a branch office here would be deterrent enough.

However, two BSE brokers already have branch offices in Pune. Kadlaskar clarified that BSE members were not allowed to appoint sub-brokers in Pune. On the vexed question of who will issue the contract note, Gupta said this would be done on a broker-to-broker basis, depending on who will take how much risk.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.