DSE to restart trading in July

Delhi Stock Exchange, which has been defunct since 2002, may resume operations in three months.

DSE is expecting to regain its lost glory with a new technology infrastructure and partnerships with various regional stock exchanges.

The exchange foresees a daily trading volume of Rs 1,000 crore within a year of starting operations in July. It expects the trading volume to touch Rs 3,000-5,000 crore in three years.

HS Sidhu, executive director at DSE, told DNA,  “We had a meeting with companies that are listed on other regional stock exchanges. Subject to no objection from their respective exchanges, these companies can trade on the Delhi Stock Exchange. We are also looking to negotiate with companies that are listed on the Bombay Stock Exchange and National Stock Exchange, but do not trade actively on these exchanges.”

DSE currently has an investment corpus of about Rs 105 crore in reserves, with cash balance of Rs 79 crore, which will be used to modernise and expand the exchange. The exchange had raised the fund by selling a substantial stake. It plans to launch an index, new products, futures and options trading within three years.

“We are looking at 1,000 companies from our own exchange and another 1,000 from other regional exchanges to start trading on DSE by the end of this year. Once the teething issues are taken care of, we would be able to persuade 500 firms from major exchanges to trade here,” Sidhu added.

DSE will especially target small and medium enterprises by developing a model where they can invite the smaller entities to raise equity from the market in a hassle-free
environment.