National Stock Exchange to launch SME Exchange

The NSE, along with the Small Industries Development Bank of India (Sidbi), is planning to set up this exchange and has received approvals from the Securities and Exchange Board last week

Mumbai: The National Stock Exchange (NSE) plans to operationalise the proposed SME Exchange in the next few months, after getting the approval from the regulator last week, reports PTI.

“We may start the proposed SME Exchange in the next few months,” NSE joint managing director Chitra Ramkrishna told PTI. But she did not divulge further details.

The NSE, along with the Small Industries Development Bank of India (Sidbi), is planning to set up this exchange and has received approvals from the Securities and Exchange Board (SEBI) last week.

The SME Exchange will be a separate exchange within the NSE.

Earlier, the premier bourse BSE had received SEBI approval for its proposed SME Exchange on 28th September. The BSE is likely to start the operations next month.

The idea of SME exchange has been mooted as small and medium enterprises are not able to raise funds from primary market as investors are less inclined to invest in their issues along with the higher charges of listing. Also, scrips of many of the listed SME entities are illiquid due to poor volume.

The idea got rolling after a task-force set up by the Prime Minister’s Economic Advisory Council has recommended setting up such exclusive platforms for the SMEs. Globally, every major bourse has separate SME platforms.

The finance ministry has also asked the market regulator to consider reduction in the mandatory period prescribed for market-making from three years to six months to encourage liquidity, minimum trading lot and reduction in time period for initial public offering.

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Stock market reports Rs1,094 crore per hour loss since last Diwali

Taking into account a total 239 days of trade since last Diwali on 5 November 2010 and six-and-half hours of trade every day, the average per-hour loss works out to be Rs1,094 crore for the market

New Delhi: As the stock market gears up for Diwali, the investors would desperately look for a turnaround of fortunes after losing more than Rs1,000 crore in every hour of trade on an average since the festivities last year, reports PTI.

People celebrate Diwali in India as a festival of lights and prosperity and worship Lakshmi, the goddess of wealth. However, the stock market trends have not been encouraging since last Diwali and the total investor wealth, measured in terms of cumulative market value of all listed stocks, has fallen by a whopping Rs17 lakh crore.

Taking into account a total 239 days of trade since last Diwali on 5 November 2010 and six-and-half hours of trade every day, the average per-hour loss works out to be Rs1,094 crore for the market.

Market analysts expect this Diwali, which also marks the beginning of a new Samvat (Hindu calendar year) 2068, to bring some good luck to the Dalal Street.

This year, Diwali would be celebrated on Wednesday, 26 October 2011, when the markets would conduct a muhurat trading to mark the beginning of a new Samvat.

Taking into account the 20% fall in the benchmark Sensex during the current Samvat, the investors have lost one-fifth of value in their holdings since last Diwali.

The 30-share benchmark index currently stands at 16,785.64 points—down 4,219.32 points or over 20% since last Diwali, when the Sensex had scaled its record closing level of 21,004.96 points during its muhurat trade.

In the process, the total investor wealth, measured in terms of cumulative market valuation of all the listed stocks, has fallen to around Rs60,00,000 crore—a huge dip of close to Rs17,00,000 crore since 5 November 2010.

“Markets have had one of the worst performances. In this dull patch, many stocks have hit 52-week low and some of them hit multi-year lows. For investors, the experience till date is tumultuous,” Ashika Stock Brokers research head Paras Bothra said.

Experts believe that a host of issues, such as high inflation, soaring interest rates, deteriorating corporate performance, slowing of economic growth and political upheaval, have dented market sentiments in past one year.

The first quarter of Samvat year 2068, which would commence from 26th October, is still expected to be muted primarily due to the aforesaid factors and lingering doubts over a resolution to the Eurozone debt crisis.

Experts said investor sentiments are likely to improve after the first quarter of Samvat 2068 and the year could be good second quarter onwards.

“The Sensex should be around 18,500 to 18,700 by next Diwali,” Kejriwal Research and Investment Services director Arun Kejriwal said.

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NSE, BSE to trade in gold ETFs till 8pm on Dhanteras

Trading in gold ETFs would begin as per the normal daily schedule at 9am Monday, but the two bourses have extended the market close timing to 8pm to provide the investors additional time for trade in yellow metal through this route on the day of Dhanteras

New Delhi: On the occasion of Dhanteras, an auspicious day for buying gold, the country’s two leading bourses National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) will conduct extended trading till 8pm on Monday in Gold Exchange Traded Funds (ETFs), reports PTI.

Besides, the two bourses have also decided to waive off the transactions charges for all trades in gold ETFs on this day to cash upon the investor demand for yellow metal on this occasion.

The gold ETFs track the gold prices and each unit of these ETFs is generally equivalent to one gram of gold.

It is considered auspicious to buy valuables like gold on occasions like Dhanteras, Diwali and Akshay Tritiya in India.

Gold ETFs, where returns are linked to the domestic price of physical gold but spare the investors from the trouble of buying and keeping the yellow metal in physical form, have been gaining ground among investors in past few years.

Gold ETFs enable investment in the precious metal on the stock exchange platform in an electronic mode.

While the global markets have been in a turmoil over the past one year and asset classes like stocks giving huge negative returns, gold prices have rallied smartly.

Tracking gold prices, gold ETFs have appreciated by about 33% since last Dhanteras, although the prices have fallen somewhat in past one month.

“Gold ETF trading timings have been extended to match the timing with the bullion market. It would help increase some volume in the segment,” Kejriwal Research & Investment Services director Arun Kejriwal said.

Trading in gold ETFs would begin as per the normal daily schedule at 9am Monday, but the two bourses have extended the market close timing to 8pm to provide the investors additional time for trade in yellow metal through this route on the day of Dhanteras.

Trading in other market segments would be as per the normal trading hours from 9am to 3.30pm.

The extended trading would be allowed in gold ETFs of Axis, Goldman Sachs, HDFC, ICICI Pru, Kotak, Quantum, Reliance, Religare, SBI, UTI and Birla Sun Life mutual funds.

The normal trading session in gold ETFs would begin at 9am and would continue till 3.30pm, followed by a closing session between 3.40pm and 4pm, NSE said in a circular.

Thereafter, an extended trading session would take place from 4.30pm to 8pm, while a five-minute pre-open trading window would commence at 4.25pm only for order cancellations.

Investors’ interest seems to have grown fast in gold ETFs in the recent months, as the average daily value of their trade on the NSE alone has grown by over four times since the beginning of this fiscal.

As per the NSE, the daily average trading value of gold ETFs have increased by over 400% from Rs18 crore in April to Rs92 crore in September 2011.

The total assets under management in gold ETFs have more than doubled in the past one year to over Rs6,000 crore, while it has grown by over five-times in two years.

The number of investor accounts for gold ETFs has also grown to nearly four lakh, from little over one lakh accounts in September 2009.

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