Rathi said the co-operation with other exchanges will help BSE set up trading terminals abroad ``and we also plan to hold talks with Nasdaq, NYSE and Singapore exchanges for mutual co-operation.''

Addressing a press conference after his meeting with senior officials of LSE, Rathi said BSE would sign an MoC with LSE in the next few months.

As part of its corporatisation strategy, the exchange has appointed KPMG as a consultant to adopt international practises in the areas of clearing and settlement. KPMG's project would involve review of the existing clearing and settlement operations and system, benchmarking with best practices abroad, identification of gaps, developing proposed business operating model including information technology-specific focus on best practices in risk management, preparing implementation plan and final roll-out.

The exchange will also consider the possibility of setting up the clearing house as a separate entitiy.

Rathi also announced that the exchange has finalised the plan for carryforward in rolling settlement. The proposal has been sent to Sebi for approval. Under the plan, it proposes to introduce carry forward facility on a daily basis. Besides, the exchange will also allow a weekly carry forward simultaneously. This is intended to help investors as the cost of carry forward for a week would be known without the daily uncertainty.

On the target date (December) for rolling settlement, Rathi felt that the infrastructure has to be in place, emphasising that depository participants have to go on-line in at least 500 cities.

The exchange prefers to take the MoU route to expansion to various regions, which will also help smaller exchanges in their survival strategy. Merger of smaller exchanges is not a desirable option as it involves cost differential in terms of card value and the legal and procedural delays, he pointed out.

The BSE is also considering helping investor associations through financial assistance to meet the legal costs.