THE UTTAR Pradesh Stock Exchange Association Ltd (UPSE) is trading on hopes of recovery from low- volume bog nowadays.
There is no commercial logic which defines why the exchange should operate but an emotional investment of its members, who wish it good luck, is keeping it going. In fact, that’s what is keeping its Additional Trading Floor in Neebu Bagh hot and working.
The ATF-Lucknow as it is popularly called was the first additional trading floor opened in the country. The basic objective of the facility was to augment UPSE’s business and provide online trading facility to Lucknow based members. It commenced online trading from 24th March, 1999.
At the of ATF-Lucknow’s inception, there were 22 members who were allotted a computer terminal which is connected with the UPSE main Server via VSAT.
Even at a time when UPSE’s daily trading volumes had fallen from the highs of Rs 30 crore per day recorded during 2000 to 2001 to barely Rs 2 to 3 crore per day in 2006-07, there are atleast 13 members still trading from the facility on as many as 25 to 30 scrips listed on UPSE. “The UPSE as such is nowhere running in loss despite the low trading volumes at the exchange as substantial revenues are being generated from renting out of office space to the broker members and the fees being charged from companies listed on UPSE” commented Vivek Saran, former Director of UPSE in Kanpur.
He said that the Securities & Exchange Board of India (SEBI) had allowed additional trading in BSE and NSE stocks at the UPSE premises by the UPSE members. After the demutualisation process, both BSE and NSE had been trying to promote trading in stocks listed on both the exchanges from the UPSE premises which was leading to low trading volumes at the regional exchange, Saran said.
{{/usCountry}}He said that the Securities & Exchange Board of India (SEBI) had allowed additional trading in BSE and NSE stocks at the UPSE premises by the UPSE members. After the demutualisation process, both BSE and NSE had been trying to promote trading in stocks listed on both the exchanges from the UPSE premises which was leading to low trading volumes at the regional exchange, Saran said.
{{/usCountry}}Ever since SEBI approved corporatisation and demutulisation of 10 regional stock exchanges (including UPSE) in the country during August 2005, the UPSE had been on the lookout for partners to augment revenues from its trading platform.