New Delhi: Struggling to revive its fortunes, the Delhi Stock Exchange (DSE) will explore ways to convert itself into a bourse for small and medium enterprises (SMEs) to resume trading, which has stopped since 2003 due to new market conditions.
The local bourse will explore the conversion once it sells 51% of brokers’ stake in the exchange by 28 August as required under the demutualisation process.
“DSE is fully geared to take up the role of SME exchange and after demutualisation we will be approaching Sebi in this regard,” DSE director and chairman, Demutualisation Committee, B B Sahny told PTI.
He also dismissed as speculation reports in some quarters that DSE would convert itself into a commodity exchange.
Sahny exuded confidence that its effort to become an SME exchange would bear fruit, as even today 1,800 companies are exclusively listed with the DSE out of a total 3,000.
When asked that moves are already afoot to bring in a dedicated exchange for SMEs, he said instead of bringing new exchange for the purpose, DSE could handle the job as it already has infrastructure for that.
To a query whether DSE would try to rope in other bourses for the SME exchange, he said initially it would be the local bourse on its own. “Other options could be explored later,” he said.
Sahny emphasised that an exchange for SMEs has to be outside Mumbai as some earlier attempts in this regard have failed since the exchanges were in Mumbai.
He said DSE’s trading platform would be different from NSE and BSE since it would cater to SMEs.
Once a vibrant bourse, trading in DSE has stopped since 2003 after new market conditions emerged like emergence of uniform settlement system.
With reserves of Rs98 crore and bank balance of Rs75 crore, the exchange will demutualise itself by the August 28 deadline, set by market regulator Sebi.
The exchange has kept fund, reserve and infrastructure and is technology ready for introduction of SME bourse, Sahny said.
DSE has already started demutalisation by inviting bids to sell 51% brokers’ stake in the bourse as part of the scheme to separate brokers’ trading and ownership rights.
The last date for submitting bids is 30 June, he said, adding Deolitte has been appointed valuer.
Under the demutulisation process, each stock exchange would have to mandatorily sell brokers’ 51% equity to separate their trading and ownership rights of bourses.