The NSE decision to offer membership to an ISE subsidiary was communicated to the latter's chairman M R Mayya today. The ISE will be completing all formalities including the formation of subsidiary and incorporation of the company. ISE hopes to see members of its participating exchanges trading on the NSE network by the end of December.

According to Ravi Narain, deputy managing director, NSE, the stock exchanges willing to become member of the NSE will not be required to have four dominannt promoters as required for the other members. But vis-a-vis the membership fees and otehr requisite fees, these members will not enjoy any concession. On the other hand, all these stock exchange members will be permitted to trade only in demat form.

The BSE proposes to seek approval of its members for offer of membership to other regional exchanges or their subsidiaries at its AGM. The BSE board seeks to take powers from the members to offer membership to subsidiaries of other exchanges at a concessional price. The proposed cost structure would add up to around a minimum of Rs 55 lakh.

According to a BSE notice to its members, the corporate bodies so admitted shall not be entitled to transfer or sell their memmership rights by way of nomination, except to another such subsidiary of the concerned exchange or any other entity approved by the governing board. In case it desires to cease doing business as a member of the exchange, the corporate body would need to surrender its membership to the BSE.