Due to lack of co-operation between the two stock exchanges major capital markets reforms initiatives like the introduction of derivatives trading, uniform settlement and rolling settlements have been languishing for more than a year.

Presenting `Mission 2000 and beyond' for the exchange, Rathi said that BSE has always been a self regulated organisation (SRO). He added that BSE has chalked out a five point agenda to ensure that the exchange improves its status as an SRO and ensures investors interest. In orderto become an effective SRO, the exchange has decided to establish ethical standards for the governing board members, especially the elected directors and the employees of the exchange who are responsible for the administration.

According to Rathi and the vice president Deena Mehta, they would endeavour to delink policy making and administrative functions of the exchange.In this context, Rathi, however, categorically denied the interference of the governing board in the day-to-day administrative decision making at the exchange in the past and also assured that a complete delinking would be in place in the near future.

The exchange has also decided to introduce a comprehensive online surveillance system by the end of April. "It will be BSE's endeavour to prove," said Rathi. The exchange has outlined a five point programme called `PROVE' which connotes protection of investors interest, regaining highest volumes, professionalisation of the organisation, improving the perception amongst investors, regulatorsand government and establishing a vision for 2005.

"Investors are our ultimate customers. BSE recognises that its success depends on the value it provides to its investors in a cost effective manner," explained Rathi. Towards this objective BSE has planned to introduce several services such as expansion of BOLT to over 500 cities by March 2000 and even overseas once the regulations are in place.

The exchange has also set up other objectives : set up its own VSAT network, a clearing corporation to provide better risk management and higher tranparency and spreading the depository services through BOLT to all the corners of the country. "We would initiate a `market-making' concept which is workable and would be effective in providing liquidity and reducing the bid and offer spread," explained Rathi.