According to Aggarwal, the motive behind the scheme was to enhance the liquidity on the bourse. ``In all the interactions we have had with our members, the problem of liquidity has been highlighted. Most of the members are of the opinion that the turnover on DSE is unlikely to improve unless the market has some depth and for that we need more liquidity,'' he noted.

The `market specialist' scheme provides an incentive tothe broker who gives the two-way quotes. The latter will get a charge on all transactions carried out on the exchange in a scrip which he provides the two-way quote. The charge will be paid by the counter-party broker, who will not be allowed to charge it to his clients.

``In effect, it will be a win-win situation for all -- the market specialist, the investor as well as the exchange. The specialist gets his cut, the investor gets an entry and exit option, and the exchange a higher turnover,'' adds Aggarwal.

Some marketmen are of the opinion that while the `market specialist' concept is good idea theoretically, in practice it could flounder. First, there are not too many investors who may be willing to risk their hard-earned money in illiquid stocks. In the event of the scheme being a non-starter (as has happened in some other exchanges), investors will be stuck in counters with no exit option.

Brokers also say there is an inherent risk of the market specialist becoming an interested party, therebyjettisoning the scheme. With the floating stock being less, the chances of manipulation becomes easier. Besides, the scheme could also face a problem if the spread between the buy and sell quotes are unrealistic.

The market-making in exchanges like the Over-the Counter Exxchange (OTCEI) as well as in the debt segment on NSE has suffered a similar fate.The market specialist scheme is similar to the jobber scheme on the Delhi Stock Exchange in its pre-screen-based trading days. ``The problem at that time was that in the absence of live quotations the scheme was rendered useless. In the floor-based trading, by the time a broker managed to locate a jobber for carrying out a buy/sell order the price of the stock had changed. This problem will not arise now as trading is screen-based. With live rates available, there will be no time lag and the chances of success are much better,'' Aggarwal said.

Bourse to extend trading session by 30 minutes

The Delhi Stock Exchange proposes to extend its tradinghours by 30 minutes to 4 p.m. The exchange is also planning to introduce a post-closing session as is prevalent on the National Stock Exchange. The bourse is at present working towards making the necessary changes in its software. In an attempt to provide a more conducive business environment, DSE is also planning to shorten its settlement period by advancing its payout from Tuesday to Monday. Subsequently, the bourse will try and further advance the payout to Saturday.