Ahmedabad Stock Exchange turns 116, may hum with life again

The Ahmedabad Stock Exchange (ASE), which started life under a banyan tree in Ahmedabad on May 31, 1894, completes 116 years on Monday. It is India’s second oldest stock exchange, though there has been no trading here for the past six years. But the ASE board members, who will be meeting here on Monday to celebrate the 116th anniversary of the exchange, will also discuss the possibility of its revival.

The ASE’s revival is likely to be a very costly affair. The board members seem to be mindful of this as they are said to be considering several options, including a tie-up with the National Stock Exchange (NSE) or opting for an SME stock exchange.
In this context, it is worth mentioning that the exchange is currently looking for space at the Gujarat International Finance Tech-City (GIFT) in Gandhinagar.

“The exchange was shifted from Manekchowk to Panjrapole in 1996,” said director of ASE, Hemantsingh Jhala.

“The shift was supposed to be temporary but it is 14 years since the event, and we are still in the same place.”

Jhala said that they had come to know that some international stock exchanges were planning to set up shop at GIFT in Gandhinagar, as the tech-city project is designed for finance companies.  “We are thinking of approaching the Gujarat government to ask for some space at GIFT for the Ahmedabad Stock Exchange,” he said.   

However, if the exchange does not get space at the tech-city, it may be shifted to a building near Ellisbridge which is still under construction. “If we don’t get space at GIFT, we may shift to our Ellisbridge building which needs total renovation,” said Jhala. Six years ago, brokers decided to discontinue trading at the ASE after which there has been no financial activity here. That, however, has not deterred the board from planning for its revival.

“The Delhi Stock Exchange recently started work on its revival and is expected to begin trading soon,” said Krishnakumar Mishra, managing director of Ahmedabad Stock Exchange Ltd. “Reviving the ASE will cost a lot of money, which is why we have some other plans too. We are looking at three options — acquisition by a new upcoming exchange, tie-up with one of the existing exchanges or starting a new SME stock exchange.” Mishra further said that board members are planning the ASE’s revival but are not ready to compete with the big exchanges.

“We will have to make huge investments to restart the ASE but even then competing with the Bombay Stock Exchange and National Stock Exchange will be difficult.”

More than 2,000 companies are listed on the Ahmedabad Stock Exchange though they are not traded. Currently, its subsidiary, ASE Capital Markets, trades in cash and F&O segment of the BSE, and the cash segment of the NSE.