NSE to enrol members of small stock exchanges
By The National Stock Excha | 12 Aug 1999
The National Stock Exchange has devised plans to allow members from smaller stock exchanges to also become its members.
For this, the smaller stock exchanges must form subsidiaries, which will take up membership in the NSE. The NSE will provide trading terminals to members of these stock exchanges. A proper grivenace handling procedure wil be set up. This plan was finalised at a meeting the Securities and Exchange Board of India had with stock exchanges on 9 August 1999.
The small stock exchange members are faced with the problem of cut-throat competition. Their margins have been shrinking so heavily that there are rumours that many of them may close down.
The NSE and the Bombay Stock Exchange have grabbed business from the small exchanges, leaving their broker members with little revnue being generated from the cards they hold in these exchanges.
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