BSE: Can it regain its position?

The oldest stock exchange in Asia, the 5th largest in terms of volume of trade and the highest number of companies listed. All this credit goes to Bombay Stock Exchange. With all the above credit it is the second largest stock exchange in India behind NSE ( National Stock Exchange of India). NSE is a young generation stock exchange which has surpassed the most experienced stock exchange of Asia with its technological framework. With the introduction of NSE the regional stock exchanges have lost their business. This stock exchange brought revolution in the trade market. The investment being proceed online removed the outcry system. The arbitration is not possible as there is not much difference in trade price between the two major stock exchange of India.

Now BSE is going to be public with the guidelines of SEBI to be demutualised. The news of NYSE taking 26% stake in BSE has not been confirmed yet. But if this deal is succeedeed then it will be a great advantage for BSE. Now it is loosing its business to NSE. In India the transaction is shifting to more and more toward derivative then cash market. The derivative transaction is more then 4 times then cash transaction. Again 98% of the derivative transaction takes place in NSE. So if NYSE becomes a majority stake holder in BSE it will help the stock exchange to frame the strategy to regain its position of number one stock exchange in India. For this what BSE needs is better technological infrastructure and transparency in the trade.

Only time will show who wins the battle in the emerging market like India.