Jasdaq Securities Exchange, Japan’s biggest market for startups, is in talks with the Bombay Stock Exchange to attract Indian companies to list on its board, a move that may help arrest a slide in trading volumes.

Jasdaq aims to lure Indian companies to sell Japanese Depositary Receipts on its Neo Market for technology stocks, said Takashi Tsutsui, Chief Executive Officer of the Tokyo-based bourse, in an interview. Tsutsui said he hopes to reach a formal agreement as early as next month.

“We see opportunities to use our experience in the global market and we can do that by allying with exchanges around the world,” Tsutsui said. “We’ve basically reached a memorandum of understanding.”

An agreement with Asia’s oldest bourse may help Jasdaq compete for listings with Tokyo Stock Exchange Inc.

Daily trading on Jasdaq slumped 54 per cent from a year earlier in the six months ended September 30, and it forecasts a full-year loss. The agreement may extend to Bombay Stock Exchange and Jasdaq taking stakes in each other, Mr Tsutsui said, declining to give further details. Kalyan Bose, spokesman at the BSE, declined to comment.

Overseas alliance

An alliance with BSE would mark Jasdaq’s fourth with an overseas marketplace. The bourse has already agreed to work with counterparts in the US, South Korea and China, Mr Tsutsui said.

Jasdaq is also seeking an alliance with the National Stock Exchange to swap information including trading systems, said Tsutsui. He visited India on December 3 and 4 to meet with management, including Rajnikant Patel, Chief Executive Officer of the BSE, and J Ravichandran, Director at the NSE.