Vadodara: The Securities and Exchange Board of India (Sebi) has rejected NSE's proposal for a tie-up with regional stock exchanges (RSEs) including Chennai, Ahmedabad and Ludhiana stock exchanges and the Interconnected Stock Exchange.
Apart from offering direct membership to them, NSE was also proposing to offer a separate trading platform for smaller companies, which are listed only on the RSEs, but are not traded currently. NSE's aim was to aggressively spread its reach ahead of its rival BSE.
Nine regional bourses had signed memoranda of understanding with NSE in October last year. These exchanges had sought the approval of market regulator for trading in another exchange.
This rejection by Sebi has come as a big shock for the RSEs as the tie-up with NSE would have enabled them to significantly increase their trading volumes. Many smaller scrips on the RSEs, which have not been trading for long, would also have got a separate trading platform on the NSE.
Sebi has given no reason as to why it rejected this tie-up angry ASE brokers said. They said RSEs can take Sebi to court on this issue, but as NSE would never join them, they cannot take such a step now.