The stock market regulator was supposed to take up the issue of clearing a memorandum of understanding signed between the NSE and nine regional stock exchanges on Saturday.
Confirming this, one of the whole-time directors of Sebi said, The board meet, which was supposed to take up the issue of the NSE agreement with the regional stock exchanges on Saturday, has been deferred. A new date hasnt been fixed yet. The Federation of Indian Stock Exchanges had earlier sought the intervention of finance minister P Chidambaram for the extension of the regional exchanges demutualisation deadline. Sebi is supposed to take a decision after consultation with the finance ministry. The informal understanding between the regional stock exchanges and the NSE forged in November for the common trading platform will help bourses like the Calcutta Stock Exchange (CSE), with a long tradition in badla trading, to find a way to survive when the business of securities trading is dominated by large exchanges like the NSE and the BSE. Apart from the CSE, the exchanges in Delhi, Ludhiana, Bangalore, Chennai, Ahmedabad, Cochin and the Interconnected Stock Exchange of India have signed similar MoU to exploit the trading platform of the NSE, where every member of these exchanges will be allowed to trade in a cost-effective manner.
Both the NSE and the BSE were in the race to take the regional exchanges on board to beef up their current level of activities. The BSEs negligible presence in the futures and options segments was one of the reasons why it was trying to lure the smaller exchanges.