The bourse has approached Sebi for approval to promote the subsidiary, the HSE executive director, M Subrahmanyam told The Financial Express. In the recently held annual meeting of regional stock exchanges, representatives of RSEs presented a memorandum to the market regulator to allow the regional bourses to become NSE members.

Further, the regional bourses made a representation to NSE and obtained positive response from the latter. Sources said that in a bid to prepare ground for the allotment of membership to select regional exchanges, the NSE has proposed to obtain the approval of its board at the next meeting. Further, to make a clear division on the turnovers of the RSEs from NSE, a separate company is to be promoted by the prospective RSE.

Meanwhile, HSE has managed to get the Sebi nod toopen up additional trading terminals throughout the state. The bourse has already set up a centre at Vishakhapatnam and Vijayawada, which are yet to be operational. Further, the exchange is in the process to set up additional floors at Kakinada, Tirupati, Nellore, Warangal, Nizamabad. According to a senior broker, joining NSE would improve the trading performance of the bourse. The turnover will increase due to arbitrage business. At present, HSE's average trade turnover is about Rs 10 crore a day.

According to market sources, NSE terminals in the state numbering over 60 will do a business of over Rs 100 crore per day. Hyderabad has about 20 terminals doing a business of about Rs 40 crore business a day, while the remaining would be coming from other centres. The HSE's proposal to extend the NSE terminal to all its members any where in the state is expected to considerably reduce the importance of exclusive NSE brokers. Apart from NSE terminal, the broker would be in a position to offer trading on HSE andISE terminals.

While the HSE need to invest only Rs 5 lakh towards membership fee, the remaining Rs 75 crore towards deposits would be collected from the prospective members, said HSE sources.