• PAGE ONE
• INDEX
• HOME

ISE to launch modified carry-forward system

Jayanta Mallick

KOLKATA, Jan. 4

INTER-CONNECTED Stock Exchange of India Ltd (ISE) is to shortly introduce modified carry forward system (MCFS). Mr Joseph Massey, Managing Director of ISE told Business Line that software for the system was ready and SEBI clearance for formal launch was awaited.

ISE dealers and traders already enjoy automated lending and borrowing mechanism (ALBM) facility through its tie-up with National Stock Exchange. ``After the introduction of MCFS, ISE would be able to provide both financing as well as share borrowing/lend ing mechanism for carry forward trades. This was expected to substantially push up the turnover and trade volumes of ISE,'' Mr Massey said.

ISE is also to seek SEBI's permission for IPO marketing. ``The preparatory work has begun for the introduction of a system by which ISE brokers would be able to vend an IPO,'' he said. It may be mentioned that SEBI had recently issued guidelines for such trades. Under the guidelines, brokers would have to undertake the responsibility of margin collection from intending investors and make payments on behalf of the investors. The regional exchanges would play the role of a ``lead exchange'' facilitating s uch transactions.

ISE has also planned to market open-ended MF schemes through its 300-strong trader/dealer network connecting 27 centres. ``We are in negotiations with Birla Global, Sun F & C and Canbank MF. A software for the purpose would be in place soon, which would facilitate on-line purchase and sale of units. NAV and related data would be made available to investors through brokers. The deal conclusion time would be significantly reduced through the proposed system,'' he said.

ISE was weighing the possibility of the introduction of market-making facility. ``A set of jobbers would be appointed for providing two-way quotes. Our trading system can be geared towards quote-driven with weightage to jobbers. However, the efficacy of such value addition in the market had to be tested,'' he said.

Further, ISE was developing a customised software through a Chennai-based vendor for hiring out its on-line trading facility including clearing mechanism to a Mumbai-based commodity futures exchange. ``We expect to enter into a deal with the commodity bo urse in April, when the software is to be ready,'' Mr Massey said.