NEW DELHI, April 9: The Association of NSE Members of India (ANMI) has called for immediate introduction of badla on the National Stock Exchange to counter the increasing business growth and turnover of BSE."Due to the introduction of badla by BSE and other exchanges, NSE is losing its business to other bourses," alternate president V D Aggrawal said today.
The turnover of NSE was once very high and manifold in comparison to BSE. However, with the introduction of badla the turnover level of BSE is fast increasing to NSE levels, he said.
There has been a continuous increase in BSE turnover since the Securities and Exchange Board of India (SEBI) approved the revised carry forward system in October last year. In the recent bull run, turnover of BSE has almost doubled from the average daily turnover of Rs 800 crore to Rs 1,686 crore on April 7, the highest turnover on the country's oldest exchange. NSE turnover is around Rs 1,950 crore per day.
Aggrawal said that to maintain NSE as a prime exchange itwas essential badla be introduced immediately. He also demanded introduction of derivative trading at the earliest possible and added that for starting trading in this segment additional net worth and deposit should not be asked for.
On the proposed Central Security Depository Ltd by BSE, Aggrawal said the entry fee was just half of what NSE had promoted in case of National Security Depository Ltd (NSDL) and the aim of BSE was to attract small investors to do trading through depository.
"The Indian capital market is surrounded by small investors and not by institutional investors, therefore, there is a need to frame policies which suit small investors," he said.
On the management of NSE, he said exchange should be run by a separate executive body and the governing body should comprise of 50 per cent elected non-members of NSE and 50 per cent nominated members from various government bodies in this area.
He also said that ANMI had already drawn attention of all concerned authorities including thepromotors of National Stock Exchange of India Ltd (NSEIL) that NSE has violated the provision of Securities Contract (Regulation) Act, 1956.
The trading members of NSE are not allowed to vote on the various matters relating to exchange similar to other exchanges, as per a provision in SCRA.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
