BSE, FISE To Approach Sebi For Indonext

Mumbai, Nov 10: | Updated: Nov 11 2003, 05:30am hrs
In its continued effort to provide liquidity to investors of small and medium cap companies, The Stock Exchange, Mumbai (BSE) and Federation of Indian Stock Exchanges (FISE), which represents 20 stock exchanges (SEs) in the country, have proposed formation of a national market termed Indonext for small and medium cap companies.

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.