THE UTTAR Pradesh Stock Exchange (UPSE) has decided to increase its income and create a self depository by the end of the current financial year to become an economically viable unit.
Talking to Hindustan Times UPSE administrator KD Gupta said that as the exchange had no permanent source of income, it planned to use its building to meet the expenditures. “We intend to have sufficient reserve funds to meet any exigency arising due to default by any of the brokers,” he said.
“The building, which is in the last stage of construction, is our only hope. We are making efforts to rent it out to ensure regular income,” Gupta added. This would help the exchange meet its day to day expenditure. “We have already brought down our overhead costs considerably and further reduction is not possible,” he said.
Surplus employees were offered Voluntary Retirement Scheme and the staff strength has been brought down to the bare minimum, he said. “After all these efforts, the exchange also needs to have regular income to meet its expenses,” he added.
In absence of adequate income and cooperation from brokers, several regional exchanges have been shut down and the UPSE too was moving in that direction, Gupta felt.
“Only joint efforts of the brokers and the management could ensure its revival,” he said.
According to him, it was necessary to keep the rate of brokerage at par with other exchanges to make the UPSE a viable venture. This could be done by raising the business volumes and turn over at the exchange, Gupta suggested.
The exchange also incurred heavy losses due to the fact that it did not have permission to trade in Futures and Options.
Setting up of the self depository would improve the financial health of the exchange. “However, this is only possible when all the five hundred registered brokers of the exchange cooperate,” he said.