Talks with MCX-SX for trading platform dropped

LUDHIANA: The new team of the Ludhiana Stock Exchange (LSE) has decided to dump all talks with MCX-SX (Multi Commodity Exchange of India Limited) for starting the trading platform in the region. Earlier, the LSE had even signed an initial memorandum with MCX for setting up a trading platform.
In the changed circumstances, the LSE board have plans to hold talks with more national level exchanges.There are more exchanges like United Stock Exchange and few others as Kotak, India Bull, Reliance that have plans to enter the business, said Professor PP Kansal, newly elected chairman of the LSE.
���We will hold talks with all these parties and choose the one which members of the LSE feel is the best,��� said Kansal.
The talks with MCX-LX were initiated by the previous management of the LSE. Interestingly, present chairman PP Kansal was the man negotiating the terms and conditions with the MCX.
The members of the LSE did not want to provide space to MCX for opening up an office in the beginning. ���When we can bargain even better, it suited us to drop the talks,��� said Kansal.
Kansal further informed that after the proposal is finalized with any of the stock exchanges it would be presented before the general house and final say would be that of the house.
At present LSE is a subsidiary that works through LSE Securities Limited. The LSE has been acting as a company after de-mutualization of stock exchanges in the country.
The LSE had been working towards setting up a trading platform aimed at reviving the stock exchange for quite some time now.
After the LSE acquired a company status following de-mutualization of stock exchanges, now, it has tickets of both NSE and BSE. This way business of the local investors has not got affected. However, LSE has witnessed manifold decrease in the number of companies listed with it. The trading platform at LSE is expected to bring medium and small enterprises (MSE) segment into limelight, said Kansal.
While PP Kansal was elected chairman in the recent elections held on September 29, Sanjay Anand has been elected as trading member director. Further, Joginder Kapoor and Satish Nagpal have been elected as shareholder directors.
In August 2007, the Ludhiana Stock Exchange became the second stock exchange in the country to get demutualization. LSE had sent to Securities and Exchange Board of India (SEBI) a proposal in this regard sometime back under
Section 4B of the Securities Contracts (Regulation) Act 1956 for Demutualization Scheme 2005. However, SEBI advised LSE to submit a revised scheme, after taking into account the provisions of the BSE (Corporatisation and Demutualization) Scheme. The Scheme provided for the seggregation of ownership and management from the trading rights of the members, restriction on voting rights of shareholders also the trading members, composition of the governing board, utilization of assets and reserves.