"We have already short-listed half a dozen technology vendors for the venture. We hope to finalise the vendor within the next month," Mr Ahuja added. However, Mr Ahuja declined to name the short-listed vendors or the possible financial implications of its decision to foray into the world of cyber trading. "It will not be correct to name anyone at this point of time," he said. The Internet trade will be routed through the fully owned subsidiary of the exchange, BgSE Financial Services Ltd (BSFL).

The introduction of Internet trading is part of the BgSE's decision to invest in technology upgradation to sustain in the face of increased competition from other exchanges. "The new technology will continue to transform the way exchanges do business, while at the same time creating new areas of risk," Mr Ahuja said.

"By going for new technology, we would be in a position to leverage our local expertise and customer base with the national and international players," Mr Ahuja said. Indian capital market has become truly global and it is only a matter of time that people here would be able to deal directly with the global markets like the Nasdaq or the NYSE. Already the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) have expressed their interest in joining hands with some of the leading global bourses. "BgSE would benefit from such deals since we already have the membership in both the NSE and the BSE," Mr Ahuja said.

Meanwhile the exchange would be upgrading its four investor trade centres, spread across the state, into full-fledged trading centres. "We have already received the DOT leased lines and we hope that everything would be in place within a few days," he said.

At present BgSE has four investor trade centres in Mysore, Hubli, Shimoga and Davangere. With the upgradation members in these centres would be able to trade directly with the BSE and the NSE. "The network of full-fledged trading centres will be extended after analysing the performance of these four centres," he added.

BgSE is also in the process of introducing the services of Automatic Lending and Borrowing Mechanism (ALBM) similar to one prevailing in the NSE and `badla' trading. BgSE has an average daily turnover of Rs 50 to 60 crore. The exchange has 558 listed companies as on March 31, 2000. The total market capitalisation of scrips on the bourse was Rs 3,94,548 crore. uat the closing of the last fiscal.

However, out of the 558 listed companies, 422 (or 76 per cent) scrips have not traded even once during the year. Only 118 (or 21 per cent) scrips were traded more than once during the year.