Speaking to The Financial Express, MSE president, S Ramasubramanian said with MSE tying up with BSE it is now open to the members to identify corresponding brokers to trade in BOLT. With this, he said, the responsibility of MSE ends but added that the exchange would provide space if the members wanted to use facilities available in the exchange.

To trade in BOLT a MSE member now has to identify a corresponding broker in BSE. He has to tie-up with him and trade through him and must register as a sub-broker to the BSE broker with the Securities and Exchange Board of India (SEBI). Certain clarifications with regard to settlement procedures have been sought and a reply from BSE is awaited. A team from BSE is expected next week to sort out some of these issues.

MSE also got the final approval for the settlement guarantee fund (SGF). After suitably amending the rules in exchange's annual general meeting in mid-September, SGF is likely to be in place by September 20, 1998, Ramasubramanian added. Training of members and staff for using the SGF facility has already been completed.

He also hoped to get SEBI's approval for the scheme of Badla this month. On demat trading he said with final approval coming from the market regulator for SGF, NSDL would apply to SEBI seeking clearance for demat trading. MSE hopes to have demat trading started by late October.

The necessary resolutions to put SGF in place would be passed at MSE's annual general meeting on Sept 12, and the fund would become operational about 12 days later, with a corpus of Rs 2.32 crore. Trading on dematerialised scrips of companies which had opted for the depository form would begin a month later. The exchange had already submitted its application to the National Security Depository Ltd for connectivity and NSDL would soon forward the application to SEBI.

The BSE would send a team to MSE next week to work out the finer points of bolt arrangement, Ramasubramanian said adding the two bourses would form a joint committee to help brokers take advantage of the facility.