Thursday, May 6, 2010

BSE, NSE and now USE?

Regional Stock Exchanges in India

During the interviews for Admissions 2010 for TAPMI's 27th PGP, a question was asked by me to many candidates about the Regional Stock Exchanges.   Most of them are aware of only Bombay (interestingly not Mumbai) Stock Exchange and National Stock Exchange - both located in Mumbai.  (Unfortunately, before NSE could shape up, the Big Bull - Mr Harshad Mehta played with all the Brokers, Investors, Bankers, with a huge Stock Market Scam in 1991-92.) The daily newspapers, TV Channels like CNBC-TV18 or NDTV Profit or Bloomberg and Internet sites also prominently quote about the movements in these two exchanges only.  They also quote the trading in Dow Jones, Hang Seng, FTSE, etc. One more reason could be that they have terminals for these two exchanges all over the country with the local brokers or their outlets. 

But, why do people forget the other three metros - Delhi, Kolkata (Calcutta) and Chennai (Madras)?  And what about Ahmedabad, Hyderabad, Bangalore, Baroda, Coimbatore, Cochin, Magadh, Mangalore, and other regional stock exchanges?  All these are also actively working.  And there was a OCTEI (Over The Counter Exchange of India) for small companies as also Inter-Connected Stock Exchange  ( ICSE for all the regional exchanges). SEBI is the regulator for all these exchanges.  Please visit :SEBI for details.  And then, SAT (Securities Appellate Tribunal) is the appellate authority for redressal of any grievances.

I give here a link to Business Line (daily of Hindu group) net page on Regional Stock Exchanges. http://www.blonnet.com/mentor/2010/01/25/stories/2010012550331101.htm A simple question was asked by a reader and it was replied saying that these Regional Exchanges are continuing to operate to cater to the requirements of those investors and players who are not so net-savvy.  In fact, Bombay Stock Exchange is over 130 years old but only during the early nineties (post economic reforms) the new National Stock Exchange was born - totally electronic simultaneous with the Dematerialisation and birth of NSDL / CDSL.

And now we are hearing about United Stock Exchange of India Ltd (USE).  Please click here to read: United Stock Exchange of India Ltd.  This exchange is the newest on board to cater to the trading in currency derivatives. There are other exchanges in India for commodities trading... like MCX.SX, etc. Thanks to reforms, transparency in operations, and concepts like Corporate Social Responsibility and Corporate Governance, almost all the corporates and regulators like RBI, IRDA, SEBI, and others are regularly resorting to Investor Guidance through print media, seminars and Ombudsman scheme, etc.  Here is an example of what SEBI has done recently : http://www.thehindubusinessline.com/2010/05/07/stories/2010050754420100.htm

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