PUNE, March 16: After many false starts over the last six months, BOLT operations on the Pune Stock Exchange (PSE) are finally expected to begin on Tuesday. This makes PSE the first exchange outside Mumbai to start online trading with the Bombay Stock Exchange.SEBI had granted approval for the same last week, but a technical snag delayed trading by a week. Out of the 40 applications that have been accepted, about 18 brokers will begin operations on Tuesday while the rest will start trading within a week's time, said sources.
Currently, trading on the bourse is largely confined to just three or four major scrips, with less than 125 of the 180 brokers being active traders. The mood now is therefore justifiably upbeat, as both the number of scrips traded as well as volumes are expected to increase significantly.
Connectivity and testing of BOLT terminals, and training of personnel is already underway at the exchange.
With trading volumes likely to increase manifold on account of the BOLT linkage, PSEpresident JN Gupta sounded an optimistic note. He said that the most significant advantage of BOLT expansion would be the restoration of investor confidence.
Speaking to The Financial Express, Gupta said, "With BSE quotes being physically available at the brokers' terminal, any possibility of manipulation by intermediaries is hereby eliminated. Besides ushering in transparency, the speed of trading will increase, leading to increase in volumes."
"The trading volumes on the NSE are, however, likely to suffer as a result," said Gupta. He added that decline in the trading volumes of NSE scrips would be somewhat compensated by an increase in arbitrage opportunities.
Arbitrage, earlier confined to the difference between the quotes available on the NSE and PSE, will now become more widespread with three different quotes available under a single roof, said sources.
Each PSE member and his BSE counterpart will share Rs 40,000 to be paid towards the infrastructure cost for installation of a BOLTterminal. Some PSE brokers who had moved the court following SEBI's suspension order are also free to avail of the BOLT facility, said a source.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
