This move by Sebi to allow a broker to shift his funds or shares maintained at the regional stock exchange (RSE) of which he is a member to the ISE, is expected to increase the number of trading members in the latter. "We expect the number of registrations to go up to 500 by October," ISE managing director Joseph Massey said adding that the exchange had already received 300 applications from members of participating exchanges of which 119 had already coughed up an additional BMC of Rs two lakh.

The member opting for transfer of BMC would as a consequence give up his trading rights on the RSE and also execute a bank guarantee for the amount that would be used to set off any bad deliveries rising against him, ISE chairman M R Mayya said.

``Asand when trading turnover increases, we expect the number of members to rise further, Massey said adding `it is a chicken and egg situation'. We should see a turnover of Rs 100 crore by March 2000.'' ISE currently nets an average turnover of Rs two crore since its inception in February 1999. Out of the total 4,500 brokers registered with Sebi, 1000 are active on the RSEs and ``we expect at least 60 per cent to move over to ISE by March end,'' Mayya said.

The exchange's recent move to issue membership to traders and dealers, who are not members of the 11 participating RSEs, is also expected to boost volumes.

``We are about to kick off an advertisement campaign for direct traders and dealers in cash-rich centres in and around the municipal jurisdiction of RSES,'' he added. In a move to increase the turnover of regional exchanges, Sebi has also allowed RSEs to expand to centres which are outside the municipal jurisdiction of other exchanges without the prior permission of the regulator.

He said theexchange would also seek permission from the regulator to set up trading terminals within the municipal jurisdiction of other exchanges.