SEBI Permitted 4 Regional Bourses to Share NSE Platform

Market regulator Securities Exchange Board of India (SEBI) in January 2011 permitted four regional bourses to share the National Stock Exchange (NSE’s) stock trading platform. SEBI has given no objection certificates to Vadodara, Jaipur, Calcutta and Madhya Pradesh stock exchanges in this respect. Upon signing of the deal members of Calcutta Stock Exchange and Madhya Pradesh Stock Exchange (MPSE) will be able to trade on both the NSE and the BSE. CSE and MPSE already have trading rights on BSE. SEBI’s permission will facilitate traders to trade through local exchanges. Traders will not be required take membership with bigger exchanges paying large sums of money.

Regionally-listed companies stand to benefit if they get traded at a national level as at the national level they will be able to raise capital and expand more efficiently. Also Stock Exchanges will benefit from rising trading volumes.