Accumulated net worth of 3 exchanges will be Rs129 crore; it will help meet Sebi’s Rs100 crore net worth criteria.
Bhavesh Shah Ahmedabad
James Broughton, the famous American poet, and poetic filmmaker once said: Adversity is a stimulus.
Well, it seems to be the case for three Gujarat-based regional stock exchanges which, stung by the Sebi circular demanding a net worth of Rs100 crore to start trading platform, are mulling to join hands and put up a united stock exchange.
Ahmedabad Stock Exchange (ASE), Vadodara Stock Exchange (VSE) and Saurashtra & Kutch Stock Exchange (SKSE), together are planning to form an umbrella ‘Gujarat Stock Exchange’ and begin a new stock trading platform. If it materialises, the new exchange will help in the attempt to qualify for the new guidelines issued by the market regulator Securities and Exchange Board of India (Sebi). “The merged entity will possibly be known as Gujarat Stock Exchange,” said an official of SKSE.
Board members from three exchanges will discuss the idea of the merger in a meeting on Monday in Ahmedabad. “In principle, we have all agreed on the merger. However, technical details are yet to be worked out,” chairman of Ahmedabad Stock Exchange (ASE), Hemantsinh Jhala said.
According to sources, the idea for the merger was floating around for last two months. It was necessitated after Sebi issued guidelines for regional exchanges in order to continue the operations. An exchange having a net worth of at least Rs100 crore and an annual turnover of Rs1,000 crore will be allowed to carry on the business, the guidelines said. “We have been discussing the idea informally for last two months. None of the three exchanges qualify in the net worth criteria on their own. But combined entity will ensure qualification. Generating business and volume will also be smooth in case of a merged entity,” said VP Vaishnav, director of SKSE.
The combined entity would be having some 936 members and net worth of Rs129 crore after the merger. Turn to p6
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