Patna, Aug 17: The Magadh Stock Exchange on Thursday became the only regional stock exchange in the country to trade on the National Stock Exchange (NSE), the Bombay Stock Exchange (BSE), Calcutta Stock Exchange (CSE) and the Interconnected Stock Exchange (ISE) when the exchange finally got connected to the NSE through ISE. ISE chairman MR Mayya inaugurated the terminal.
Trading on NSE will drastically reduce the transaction cost of investors and ensure payout of shares and cash within 14 days. After the inauguration of the NSE segment in the bourse, Mayya told mediapersons that the turnover fee at the ISE was the lowest, only Rs 33.65 per lakh.
He added that efforts were on to reduce it by trying to give the Securities and Exchange Board of India's fee as bank guarantee and have the stamp duty based on delivery basis rather than on the turnover basis. The Magadh Stock Exchange also got clearance from CSE to do vyaj badla, which will enable its members to get finance in lieu of securities. Having been superseded by Sebi for a period of time, the exchange elected its own council of management on June 7. On ISE, Mayya said the exchange was trying to get connected with BSE also and it had put through a request to the officials of the Mumbai bourse in this regard.Mayya also spelt out a number of new plans.
The first is to reduce the post-trading cost (which is nearly 3/4th of the total trading cost) for which ISE plans to introduce the depository. The board has already approved the proposal in principle, but the business development committee is now studying it. Second, plans are afoot to introduce the badla or the modified carryforward trading system for which the application is now pending with Sebi. Mayya also advocated the Brussels model for this badla trading.
The third plan is to market IPOs, and the exchange is eagerly waiting for the committee set up by Sebi on this to submit its report by October this year. Last but not the least, Internet trading is also on cards."Preliminary studies have already been made and we are almost prepared to launch the Internet trading soon," said Mayya.
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