The exchange has reduced the no-delivery period in demat scrips from the current 4-5 weeks to 2-3 weeks. The tick size has also been reduced to 5 paise while auction time at the exchange will now coincide with normal market timings.

The exchange aims to recapture its numero uno slot by the end of the year by generating fresh business. ``We plan to expand to 500 cities from the current 200 by the end of the year and offer 300-400 new connectionswith DoT's approval for use of space on 18th transponder on HECL's hub,'' said a BSE official. He added that 400 was an initial target and number of connections were expected to grow. ``While NSE has a market share of 41 per cent, we are currently at 30 per cent. We aim to surpass NSE by the end of the year,'' the official pointed.

BSE President Anand Rathi stressed the need of a counterbalancing force in the markets to reduce the FII impact on the markets. He stressed that banks and Indian institutions like LIC and GIC could play a key role by stepping up their participation in equity markets which is currently small in comparison to international trend. ``With Indian pension funds crating wealth at the rate of only 2.5 per cent above inflation, they should be allowed to channelise funds through mutual funds,'' he pointed out.

Regarding initial public offerings, BSE officials said that a company should offer a minimum of 25 lakh shares to the public with a market capitalisation of Rs 10 crore to createliquidity at the counter.

The exchange has introduced a new software which will provide for member-wise tracing of introduction of fake/forged shares. The new surveillance system at the exchange will introduced on July 15. The exchange has appointed Price Waterhouse Coopers as consultant to establish Vision 2005 as a long term plan for its growth. The study would cover major exchanges across the globe to adopt the best practices.