| |
ICSE to urge institutions,banks to join as dealers
Neena Sreedharan
MUMBAI, January 13: The Inter-Connected Stock Exchange (ICSE) is attempting to rope-in financial institutions (FIs), bank subsidiaries and leading foreign institutional investors (FIIs) to join the bourse as dealers.According to sources, ICSE will soon write to them, giving details on the exchange and criteria for joining as dealers, which is subject to the approval of the Securities and Exchange Board of India (Sebi).ICSE, which has already received an in-principle approval from Sebi, has developed a system of having two entities on the exchange - dealers and traders. Dealers must be experienced institutions with a networth of Rs 10 crore. Brokers, who are members of the exchanges comprising ICSE, are eligible to become ICSE's traders. Institutions have to pay an admission fee of Rs 10 lakh as infrastructural fee. They must keep a deposit of Rs 10 lakh, as capital-adequacy fee. Traders have to pay an admission fee of Rs 25,000 and a capital adequacy fee of Rs 4 lakh. The idea of marketing the conceptis to reach out to retail investors. Broking outfits of FIs, FII brokerage houses and bank subsidiaries are generally members with major stock exchanges in the country. They will also have access to a large investor base all over the country and also trade in a number of stocks listed only on the regional bourses. ICSE is, meanwhile, collecting an amount of Rs 1 crore from each of the regional bourses over the next two years, which coincides with its payment schedule for infrastructure, trading solution and hardware.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
|
 |
