"Derivatives trading is likely to be introduced by the stock exchanges as soon as the required legislation is passed by the parliament. BoI has already initiated required steps and is gearing up to perform the role as clearing banker to the derivatives segment of the Bombay Stock Exchange (BSE). Subject to the necessary approvals, the bank will consider joining derivatives trading as the clearing member," BoI chairman and managing director, S Rajgopal said. He was addressing a brokers' meet in Mumbai on Thursday.

The chairman also announced several measures which the bank will be adopting in the near future to ease the flow of funds to the broker community. The measures includes delegation of more powers and setting a higher funds sanction limit for the officers working in its stock exchange branch.

"BoI currently has 320 fully computerised branches. Its 210 partially computerised branches will also be fully computerised by the end of the current year and 500 of the major branches be networked to provide anywhere, anytime banking. Special attention is being paid to provide latest technology based services to the stock exchange and the brokers," Rajgopal added.

BoI has a seventy-eight year association with the BSE when the bank started managing the clearing house of BSE in 1921, through the BoI Shareholding Ltd.

"After the BSE started accepting guarantees from the brokers in lieu of margins and for other purposes, the requirement of the brokers have increased considerably. Besides, due to augmented volumes, the working capital requirements have also increased. To this end, our stock exchange branch has been extending various facilitite like overdraft, guarantees, remittances etc. to the brokers," he said. The chairman also complimented the BSE for floating the central depository Services Ltd, a joint venture with BoI and other institutions.

The BSE president, Anand Rathi, added that internet trading is expected to be introduced within six months. "The growth of retail debt market in the near future is another eagerly awaited development. The BSE has drawn up business plans to make the best of these opportunities, as and when they are introduced," Rathi said.