MSE to pick up BSE card via subsidiary

By Our Special Correspondent

CHENNAI, MAY 20. Making a U-turn, the Madras Stock Exchange (MSE) has now decided that its recently-floated subsidiary will take up direct membership in the Bombay Stock Exchange (BSE).

This is a far cry from its earlier stand to let its subsidiary - MSE Financial Services Ltd. - become a sub-broker with UTI Securities Exchange Ltd.The changed stand follows objections raised by the National Stock Exchange (NSE) and the Securities and Exchange Board of India (SEBI) on the MSE subsidiary taking up sub-brokership of UTI Securities Exchange.

The regulatory authority has raised several questions relating to the modalities of the subsidiary operating as a sub-broker. The regulator is not convinced as to who will take care of the problems of investors should something go amiss.

The MSE earlier had opted for the sub-broker route for its subsidiary as it was thought to be a cost effective way of getting its brokers connectivity to BSE and NSE.

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Section  : Business
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