Having signed a draft memorandum of understanding with the London Stock Exchange (LSE) recently, it was also holding talks with the New York Stock Exchange (NYSE) and Nasdaq for a tie-up, NSE managing director RH Patil said.NSE has also lined up capital expenditure plans of over Rs 60 crore per annum over the next three years, he said. ``We are preparing for an Internet-based overseas network which would prove cheaper than other modes,'' he added.

As of now, there is no restriction on setting up terminals anywhere in the world but using VSNL lines is very costly-about Rs 40 lakh per annum per location, he said. V-Sat network cannot be taken outside the country, because of the limited expanse of the service satellite's coverage, he said adding this leaves NSE with two alternatives-Net or VSNL. Net is far cheaper. Which is why everybody is waiting for the Sebi approval for Net-based trading, Patil said. ``We are ready to set up terminals abroad, if the sebi gives the permission,'' he said, adding physical infrastructure is already in place, only Net connectivity is required. However, Patil ruled out the possibility of replacing thevsat network in the country with the Net.

NSE awaits Sebi nod to expand operations abroad via InternetBut, it can be used as additional infrastructure for connecting remote places which are not well connected through the telecom network, he said adding even within the country Net-based trading would be cheaper.

On tie-ups with foreign exchanges, the NSE managing director said finalisation of deals would take time as the exchanges on both sides have to take several approvals from various authorities and boards.

NSE has proposed a Rs 60 crore capital investment on its network and other infrastructure projects including a Rs 20 crore investment in the ongoing building project at Bandra-Kurla complex.

This would only go up during the following years as the exchange envisages at least a Rs 50 crore investment in infotech related projects from 2000-01, he added.

Internal accruals are good, we reported a cash profit of Rs 45 crore last year, and NSE is a dividend paying company, Patil said. It paid 20 per cent dividend last year.

NSE was also planning to increase its trade handling capacities three fold by mid-2000 to 20 lakh trades from seven lakh trades now, he said.Though the number of trades handled on NSE on a single day have peaked only to 5.68 lakhs so far, the exchange was planning to add 40 per cent more capacity by month-end taking the total capacity to 9.6 lakh trades, Patil said.

At present, only one main-frame computer is handling the whole host of trades on the exchange, he said, adding we are trying to add one more box (computer) to it to take the capacity to 20 lakh trades per day by June 2000.Once two computers are linked with the enabling software, it would be easier for adding more boxes to the system in future, he said.

Today, average number of trades on the excahnge can be said to be over three lakhs and ranks among the top five exchanges in the world, the NSE managing director added.

Unless the size of our industry and market capital increase phenomenally we cannot match NYSE, Nasdaq in terms of turnover, but we can boast that we match them in terms of services offered, in which we are not far away, he said.

As nse was giving thrust to introduction of new products,including derivatives, it is expecting volume growth, which in turn would result in more income, Patil said.

However, he said debt market is not a money earner as of now. In fact, it imposes costs on us. But it is being looked at as a project which will fetch returns and give edge in the long-term.