BUSINESS
According to two sources familiar with the development, a team at the NSE is working on a war-footing to bring the SME platform online by the end of January 2011.
The National Stock Exchange (NSE) is set to provide a platform for trading in the shares of small and medium enterprises (SMEs) soon.
According to two sources familiar with the development, a team at the NSE is working on a war-footing to bring the SME platform online by the end of January 2011 with almost all the features currently afforded by the main exchange.
An NSE spokesperson, however, denied the development.
The Securities and Exchange Board of India (Sebi) had come out with a set of norms for the setting up of an SME platform in November 2009.
Apart from the NSE, the Bombay Stock Exchange and MCX-SX had also expressed interest in setting up an exchange platform for small companies by making an application with the regulator.
According to sources, the SME segment at NSE will not have one continuous trading session but short, multiple trading sessions, unlike the cash market which opens everyday at 9 am and closes at 3.30 pm.
“The platform is being built on the lines of pre-open session in the cash market, with the difference that it will have 4-5 such sessions in a day,” said a source.
The thinking is that the platform may not generate serious volumes, so bunching it up through stop-start sessions would build up liquidity in these short sessions, making trading more viable and more active.
Listed stocks in the SME segment in bourses such as London’s Alternative Investment Market invariably suffer from low liquidity, experts said.
Liquidity will also be addressed through a market-maker which would provide the buy and sell quotes required to facilitate trade when there is not enough activity in the platform.
The plan is to make market makers provide two-way quotes for 75% of the time the platform remains open.
As per the Sebi circular, merchant bankers have been asked to bear the responsibility of market making for a minimum three years.
They can also opt to join hands with nominated investors like a private equity fund, a venture capitalist, a high net worth individual or a qualified institutional buyer.
Once the trading sessions stabilises and enough orders are generated on a daily basis, the SME segment will eventually be merged with the cash market.
“Currently the plans are to merge it with the cash market after two months of run, but it could later be changed depending on the requirement and response,” the source said.
The SME segment platform is being built on the NEAT (National Exchange for Automated Trading) Plus software wherein the front end is developed by a team of software professionals from NSE and the back end is being created by NSE’s partner Tata Consultancy Services.
Meet Gyanesh Kumar, IIT graduate, who becomes new Chief Election Commissioner
DNA TV Show: RSS' Bihar model ahead of Assembly elections in state
WPL 2025: Renuka, Wareham spark collapse as RCB bowl out Delhi Capitals for 141
Champions Trophy 2025: Ex-Pak cricketer says Pakistan don't deserve to win, 'Chal jaaye toh...'
Samantha Ruth Prabhu's Dippam Dappam dance leaves Chennai students awestruck, viral video
Breaking MS Dhoni's record is no big deal for Dinesh Karthik: 'It’s not something...'
Amid Mahakumbh rush, video of vehicle running on railway track goes viral; here's why
Who is Rohit Chopra? Indian-origin businessman called arrogant by JPMorgan CEO Jamie Dimon
All eyes on Mohammed bin Salman, as Trump, Putin and Zelensky set to meet in Saudi Arabia for...
WATCH: BJP office bearer dances to ‘Main Hoon Don’ flashing gun, FIR filed
Nepal student death: Massive protests at Odisha's KIIT University, students demand justice
Meet man, son of famous film actor, cracked UPSC exam with full-time job, his AIR was…
Mahakumbh 2025: Fire breaks out again at Prayagraj, no casualties reported
Gautam Adani, India's second richest man, donates Rs 2000 crore for setting up 20...
Dil Madharasi Teaser: Sivakarthikeyan impresses in rugged avatar, to face off against Vidyut Jammwal
‘I am not a...’: Jaya Kishori BREAKS silence on her Rs 2.6 lakh Dior bag controversy, WATCH here
PCB breaks silence on no Indian flags in Pakistani stadiums ahead of Champions Trophy 2025
Delhi residents report hearing mysterious ‘boom’ sound during earthquake; what caused it?
After Narayana Murthy's Infosys, Ratan Tata’s TCS makes BIG announcement, set to issue...
JPMorgan Chase CEO rejects hybrid work requests from employees amid layoffs says, ‘Don’t waste...'
Auspicious Start for 'Jatadhara': Mahurat ceremony held in Hyderabad
Kirill Yurovskiy: How to Build a Sustainable Fashion Brand in the UK
Bad news for Jhunjhunwala as the company loses Rs..., stock goes down by...
Audi launches Audi RS Q8 2025 in India: Know price, specifications and unique features
The Power of Ayurveda: Dr Shyam's Ayurveda Leads the Wellness Revolution in Dubai
15 Crucial Factors to Consider Before Choosing MBBS in Georgia 2025: Education Vibes
Narayana Dominates JEE Main 2025 Session 1 with Exceptional Results
Karan Johar says Yash Johar was 'heartbroken' when Amitabh Bachchan's... flopped: 'He believed...'
Meet Acharya Indravarman: The best astrologer in Bengaluru & Karnataka
How to increase your chances of getting a personal loan
After retaining Asia's richest family tag, now Mukesh Ambani's Reliance beats Apple to become...
Ex-star cricketer, wife buy luxury apartment for Rs 110000000, it is located in...
How a name change caused makers of Bira beer to lose hundreds of crores; know what happened
The Power of Networking: How IFERP memberships open doors to global opportunities for universities
India's Got Latent row: Maharashtra Cyber Cell refuses Samay Raina's special request to...
Mukesh Ambani's wife Nita Ambani makes passionate pitch for Olympics 2036, says 'India will...'
Jyotiraditya Scindia makes BIG announcement on 6G, claims internet speed will be...
Meet man, who was once member of MS Dhoni-led Chennai Super Kings, now works as a bus driver
Did Virat Kohli get special food delivery amid BCCI's 'no personal chef' rule? Report claims...
Gautam Adani's BIG move in space sector, Adani-backed firm among three finalists in India's...
New India Co-op Bank: RBI uncovers massive fraud of Rs 122 crore; know what’s the case
Shakira hospitalised due to abdominal pain, apologises to fans for cancelling Peru concert
South Korean actress Kim Sae-ron of A Brand New Life fame found dead at 24
'Life-threatening cold' ALERT in US as Polar Vortex, snow, floods grip America: What does that mean?
Cristiano Ronaldo vs Lionel Messi, who is better? 66 per cent of former footballers believe...
Champions Trophy 2025: No Indian flag in Lahore Stadium sparks controversy ahead of tournament
After strong tremors in Delhi-NCR, 4.0 magnitude earthquake jolts Bihar's Siwan
Delhi-NCR earthquake: Netizens react with hilarious memes amid 4.0 magnitude tremors, check here
BAFTA: Payal Kapdia's All We Imagine As Light faces another disappointment, films loses to...
Student paraglides to college after getting late for exam, netizens react, watch viral video
Israeli PM Benjamin Netanyahu issues BIG warning to Hamas: 'Gates of hell will...'
Delhi-NCR Earthquake Today: Tremors of magnitude 4 jolt Delhi and adjoining areas
This film has broken world box office records, not Hollywood, Bollywood but...
Meet Satyam Pandey who got high-paying job offer, not from IIM, NIT, IIIT, his annual salary is…
Gurgaon couple reunites with lost dog after three-month search in Agra
Meet man, IIT graduate, who topped UPSC exam in third attempt, he is from...
Noida authority takes BIG action against promoters of 2 housing projects, as realty firm fails to...
WPL 2025: Ashleigh Gardner, Deandra Dottin star as Gujarat Giants beat UP Warriorz by 6 wickets