BSE and FISE will be jointly submitting a detailed proposal to the capital market regulator - the Securities and Exchange Board of India (Sebi), shortly in this regard.
In a joint statement signed by both Dr Manoj Vaish, executive director and CEO, BSE and Vijay Bhushan, chairman, FISE said, Both the institutions consider this as a major initiative, which would generate liquidity in shares of small and medium cap companies.
This would help investors, companies and the network of about 7,000 members of regional stock exchanges (RSEs), who cater to investors in far-flung areas of the country, contributing to the development of the capital markets. This also marks a beginning of stronger ties between BSE and RSEs, for the growth of capital markets in the country, the joint statement added.
Securities of small and medium cap companies listed on various RSEs do not have liquidity, due to which investors in these companies are not able to find an exit route.