BgSE chants revival mantra with new platform

As per Sebi direction, BgSE shed 51 per cent stake in August 2007 at a price of Rs 16.40 per share.

BgSE, for fiscal year ended March 31, 2009 reported a turnover of Rs 3.65 crore (listing fee of Rs 29 lakh, rentals of Rs 111.04 lakh et al) as against Rs 3.97 crore in the previous year. BgSE sources told Deccan Herald that the bourse is planning to put in place a new trading platform so that local companies, as also retail investors, can benefit from the move.

The move is aimed to help midcap corporates, small and medium enterprises raise capital and also ensure fair share price for retail investors who can track their movements.

Revival strategy
BgSE, incorporated in 1957, went live in 1964, and was first in South India to go for electronic trading in 1996. As a revival strategy BgSE plans to have own trading platform, introduce a slew of business products, issue deposit-based memberships, besides creating a separate market niche for the SME segment. The bourse currently boasts of around 326 corporates listed on it and the new platform, they added, would help this number to swell bringing more revenue to the exchange and business to brokers.

However, so far 150 companies have delisted from the bourse. Sources said, the bourse which has been without an Executive Director since over two months, has zeroed in on three names which has been sent to Sebi for due diligence and final approval. In a related development, the BgSE is in talks towards reviving regional stock exchange alliance.

Sources said, BgSE is holding talks with Delhi Stock Exchange besides Indore, Jaipur, Ahmedabad, Kanpur and Ludhiana exchanges for regional tie-ups. The alliance, they said, could see each exchange provide the respective members a trading platform for conducting business.

More options
The local brokering  fraternity also welcomed the BgSE’s intiatives. Stating that the new platform would provide additional option besides NSE & BSE, one broker, requesting anonymity, said it would expand the market and certainly help companies that do not have pan-Indian presence to raise capital at lesser cost and list locally as well. Further, regional companies currently not getting traded will be able to do so specially those registered in Bangalore and Chennai. According to Jahgirdar M S Krishnamurthy, another broker, it will help plantation and Chennai-based companies and improve transactions listed in other local bourses. “It will  facilitate movement in scrips and help people to know the fate of their portfolios. Regional companies will have an advantage. With broker and intermediary support,  volumes will come,”  he added. 

Another broker T S Gopalakrishna agreed: “The new trading platform is definitely a good exercise to make retail investors active in the southern belt, specially Chennai and Bangalore. ”

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