nter-connected Stock Exchange of India Limited (ISE) is a national-level stock exchange, providing trading, clearing, settlement, risk management

and surveillance support to its Trading Members.ISE incorporated as a company limited by guarantee in January - 1998. It has 791 Trading Members, who are located in 84 cities spread across 18 states. These intermediaries are administratively supported through the regional offices at Delhi, Kolkata, Patna, Ahmedabad, Coimbatore and Nagpur, besides Mumbai. ISE aims to address the needs of small companies and retail investors by harnessing the potential of regional markets, so as to transform them into a liquid and vibrant market using state-of-the art technology and networking. ISE has floated ISE Securities & Services Limited (ISS) as a wholly-owned subsidiary under the policy formulated by the Securities and Exchange Board of India (SEBI) for Revival of Small Stock Exchanges. The policy enunciated by SEBI permits a stock exchange to float a subsidiary, which can take up membership of larger stock exchanges, such as the National Stock Exchange of India Limited (NSE), and Bombay Stock Exchange Limited (BSE). ISS has been registered by SEBI as a Trading-cum-Clearing Member in the Capital Market segment and Futures & Options segment of NSE and Capital Market segment of BSE. Trading Members of ISE can access NSE and BSE by registering themselves as Sub-brokers of ISS. Thus, the trading intermediaries of ISS can access other markets in addition to the ISE market. ISS, thus provides the investors in smaller cities, a one-stop solution for cost-effective and efficient trading and settlement services in securities. Complementing the stock trading function, ISE's depository participant (DP) services reach out to intermediaries and investors at industry-leading prices. The full suite of DP services are offered using online software, accessible through multiple connectivity modes - leased lines, VSATs and internet. Operation of the demat account by a client requires just a few mouse clicks. The Research Cell has been established with the objective of carrying out quality research on various facets of the Indian financial system in general and the capital market in particular. It brings out a monthly newsletter titled "Capital Market at a Glance" and a monthly publication titled V share. Apart from monthly reports, it also circulates daily Newsletter named ISE Financial Markets in Motions and Techni-Trade. The Research Cell plans to expand its activities by publishing a host of value based research publications, covering a number of areas, such as equities, derivatives, bonds, mutual funds, risk management, pension funds, money markets and commodities. The ISE Training Centre conducts classroom training programmes on different subjects related to the capital market, such as equities trading and settlement, derivatives trading, day trading, arbitrage operations, technical analysis, financial planning, compliance requirement, etc. Through these courses, the training centre provides knowledge to stock brokers, sub-brokers, professionals and investors to also appear for the certificate courses conducted by the stock exchanges. It also aims to make and build the professional careers of MBAs, post graduates and graduates, with a view to enabling them to work effectively in securities trading, risk management, financial management, corporate finance disciplines or function as intermediaries (viz. stock brokers, sub-brokers, merchant bankers, clearing bankers, etc.)

nter-Connected Stock Exchange Of India Limited

Navi mumbai, Maharashtra, India Finance Products - Services,

Public. Ltd. Firm Since 0 Inter-connected Stock Exchange of India Limited (ISE) has been promoted by 14 Regional Stock Exchanges to provide cost-effective trading linkage/connectivity to all the members of the Participating Exchanges, with the objective of widening the market for the securities listed on these Exchanges. ISE is a national-level stock exchange and provides trading, clearing, settlement, risk management and surveillance support to its Traders and Dealers. ISE aims to address the needs of small companies and retail investors with the guiding principle of optimising the existing infrastructure and harnessing the potential of regional markets, so as to transform these into a liquid and vibrant market through the use of stateof-the-art technology and networking. The Participating Exchanges of ISE have in all about 4500 stock brokers, out of which more than 200 have been currently registered as Traders on ISE. In order to leverage its infrastructure and to expand its nationwide reach, ISE has also appointed around 450 Dealers across 70 cities other than the Participating Exchange centres. These Dealers are administratively supported through the regional offices of ISE at Delhi (north), Kolkata (east), Coimbatore (south) and Nagpur (central), besides Mumbai (west). ISE has also floated a wholly-owned subsidiary, ISE Securities & Services Limited (ISS), which has taken up corporate membership of the National Stock Exchange of India Ltd. (NSE) in both the Capital Market and Futures & Options segments and The Stock Exchange, Mumbai in the Equities segment, so that the Traders and Dealers of ISE can access other markets in addition to the ISE market and their local market. ISE thus provides the investors in smaller cities a one-stop solution for cost-effective and efficient trading and settlement in securities. With the objective of broadbasing the range of its services, ISE has started offering the full suite of DP facilities to itsEstablishment of National Stock Exchange of India Ltd., (NSE) in 1994 with an all-India spread and expansion of operations of Bombay Stock Exchange(BSE) throughout the country, both of which have their trader work stations at over 400 centres in the country today, have led to the virtual extinction of all the 19 Regional Stock Exchange (RSEs) spread across the length and breadth of the country. The share of 19 RSEs, which was as much as 45.6 per cent of the total all-India turnover of Rs. 2.39 lakh crore in 1995-96, declined progressively year after year and in 2001-02, it was just 8.4 per cent of the total volume of Rs. 8.96 lakh crore. At present, there is virtually no trading at any of the RSEs. Trading in the cash segment is thus confined to NSEand BSE only, with the share of the latter, which used to account for over 70 percent of the all-India volume of trading till 1995, is also progressively declining. Currently, BSE accounts for about 30 per cent of the aggregate volume of trading on NSE and BSE in the cash segment. In the derivatives segment, while NSE clocks in about Rs. 2000 crore daily, the turnover on BSE has been progressively declining virtually to the zero level. The RSEs of the country and their members had spent over Rs. 200 crore in automating their trading, clearing and settlement systems, largely driven by regulatory compulsions, sadly to witness them lying idle at present. [edit]Causes

of decline of the Regional Stock Exchanges

Abolition of Badla with effect from July 2, 2001, acted as the backbone of trading at the Calcutta, Delhi, Ahmedabad and Ludhiana Stock Exchange Association and also at a few other exchanges, which conducted Badla trading but in a clandestine manner, dealt a serious blow to trading at the RSEs. Introduction of uniform trading cycles at all the stock exchange, also effective from July 2, 2001, reduced further the volume of trading at the RSEs due to diminished opportunities for arbitrage transactions. Introduction of compulsory rolling settlements, initially in a few securities and subsequently in all securities effective from December 31, 2001 on a T+5 bases accelerated the reduction in turnover at the RSEs. The switch over of the rolling settlement to T+3 effective from April 1, 2002 and to T+2 with effect from April 1, 2003 sealed the fate of the RSEs. Yet another major reason for the absence of trading at the RSEs is that all the major operators are all these exchanges acquired memberships of either NSE or BSE or of both, while most others acquired the sub-brokerships of members of NSE/BSE and all of them switched over their operations completely to NSE and BSE. In spite of the fact that trading at the RSEs has ground to a halt, RSEs have managed to survive so far because of the annual listing fees that are being received from the listed companies. The circulars issued by the Ministry of Finance on April 23, 2003 withdrawing its earlier circulars which required all companies including existing listed companies, to be listed on the stock exchanges located in the State where the registered office or the main works/fixed assets of the company are situated, has led to the conclusion of RSEs as companies have started lining up one after the other to get themselves delisted from the RSEs. [edit]Establishment

of Inter-connected Stock Exchange

It was the dwindling fortunes of RSEs that brought them together to establish the Inter-connected Stock Exchange of India Ltd. (ISE). At a meeting of the Federation of Indian Stock Exchanges held in October 1996, a Steering Committee was formed to evolve an Inter-Connected Market System. As a result, ISE, which was promoted by 14 regional stock exchanges of the country (excluding Calcutta, Delhi, Ahmedabad, Ludhiana and Pune Stock Exchange, apart from NSE, BSE and OTCEI) was incorporated on ISE by SEBI under the Securities Contracts (Regulations) Act, 1956 on November 18, 1998, ISE commenced trading on February 26, 1999. ISE was launched with an objective of converting small, fragmented and illiquid markets into large, liquid national-level markets. This was a unique experiment, with a highly automated trading, clearing and settlement systems backed by state-of-the-art computers. ISE is also a professionally managed stock exchange with the Chairman of the Exchange being also a Public Representative Director from its inception. Unfortunately for the RSEs, particularly small brokers, the ISE experiment did not succeed. The daily turnover, which used to be Rs. 1 to 2 crore in the first six months, gradually declined to virtually zero level. Failure of ISE was, due to the bigger brokers of the participating RSEs failing to support any interest in trading on ISE due to commercial considerations. As a result, it becomes virtually impossible for ISE to create any worthwhile liquidity in its markets in competition with the breadth and depth of NSE and BSE. Markers continued to be fragmented as the participating RSEs did not close down their regional segments. All the while the small fragmented and illiquid market failed to emerge. ISE has also not succeeded in getting companies listed on it despite the stipulation by SEBI that the State of Maharashtra constituted the regional area for ISE due to lack of regulatory support for making it applicable to over 3,000 already listed companies in the State of Maharashtra. [edit]Mission

ISE shall endeavor to provide flexible and cost-effective access to multiple markets to its intermediaries across the country using the latest technology. [edit]Core

team
Designation

Name

Mr. K. Rajendran Nair

Chairman, Public Interest Director

Mr. A. K. Mago

Public Interest Director

Mr. H. C. Parekh

Public Interest Director

Mr. K. V. Thomas

Shareholder Director

Mr. Santosh Muchhal

Shareholder Director

Mr. Bharat M. Meisheri

Shareholder Director

Mr. Debaraj Biswal

Shareholder Director

Mr. Dharmendra B. Mehta Shareholder Director

Mr. P. Sivakumar

Shareholder Director

Mr. Surendra Holani

Trading Member Director

Mr. Ranjan Kumar

Trading Member Director

Shri P. J. Mathew

Managing Director

[edit]Timeline July 6, 1996 A report on Inter-connected Market System (ICMS) submitted to the Federation of Indian Stock Exchange (FISE). October 26, 1996 Steering Committee was constituted by FISE at Hyderabad. January 4, 1997 Pricewater House Coopers,the management consultancy firm, submitted a feasibility report and recommended the establishment of ICMS. January 22, 1998 ISE incorporated as a company limited by guarantee. November 18, 1998 SEBI grants recognition to ISE. February 26, 1999 Commencement of trading on ISE. December 31, 1999 Induction of 450 Dealers commences. January 18, 2000 Incorporation of ISS as a company limited by share capital. February 24, 2000 SEBI registers ISS for the Capital Market segment of NSE. May 3, 2000 Commencement of trading by ISS in the Capital Market segment of NSE. January 10, 2001 Turnover in the Capital Market segment of NSE crosses Rs. 1000 million per day. February 28, 2001 Turnover of Rs. 1508.80 million recorded by ISS in the Capital Market segment of NSE. May 4, 2001 Internet trading for clients started by ISS for the NSE segment through DotEx Plaza. May 19, 2001 ISEs website, www.iseindia.com, launched. February 13, 2002 SEBI registers ISS for the Futures & Options segment of NSE. May 6, 2002 ISS commences trading in the Futures & Options segment of NSE. March 12, 2003 ISS admitted as a member of the Equities segment of BSE. April 1, 2003 DP services through CDSL launched by ISE. June 21, 2003 First Investor Education Program under the Securities Market Awareness Campaign (SMAC) of SEBI conducted at Vashi. January 9, 2004 Peak turnover of Rs. 3034.90 million recorded by ISS in the Capital Market segment of NSE. May 17, 2004 First DP branch office opened at Coimbatore by ISE. July 17, 2004 First Investor Point opened at the Vashi Railway Station Complex by ISE. July 24, 2004 Second DP branch opened at New Delhi by ISE. September 3, 2004 Third DP branch opened at Kolkata by ISE. December 27, 2004 Trading in the BSE equities segment started by ISS. September 15, 2005 Approval of ISEs Corporatisation and Demutualisation Scheme by SEBI. October 20, 2005 Switchover to Direct Client Dealing commences in ISS.

November 24, 2005 ISE re-registered as a for profit company, limited by shares. November 24, 2005 Board of ISE reconstituted in tune with the Corporatisation and Demutualisation provisions. July 28, 2007 ISE declared a dividend of 400% to its shareholders for the first time since its incorporation. September 13, 2007 ISE was notified by SEBI as a Demutualised Exchange. January 30, 2008 Restructuring of Board of ISE in accordance with the Corporatisation and Demutualisation Scheme, 2005. March 4, 2010 ISE awarded the contract to TCS for reviving its Trading Platform. September 25, 2011 ISE forwarded its application to SEBI for seeking trading platform approval. [edit]Services [edit]Membership A registered Member is entitled to execute trades and to clear and settle trades executed on his own account as well as on account of his clients in the Capital Markets Segment. Membership of the Exchange is open to corporate entities, individuals and partnership firms who fulfill the eligibility criteria laid down by SEBI and ISE [edit]Depository

services[8]
[9]

Inter-connected Stock Exchange is a Depository Participant of Central Depository Service (India) [10] Limited (CDSL) and National Securities Depository Limited (NSDL). ISE-DP has branches at Delhi, Kolkata, Patna, Guwahati, Ahmedabad, Hyderabad, Nagpur, Coimbatore, Tirunelveli and 155 Collection Centers across the country. Following depository services of CDSL are provided to the individual and corporate investors by ISE-DP. Dematerialisation (Demat) Rematerialisation (Remat) Pledge of Demat securities Electronic Access to Securities Information & Execution of Secured Transactions (easiest) Settlement of securities in Demat Mode Electronic Access to Securities Information (easi)

[edit]Research

and Training
[11]

The ISE Training centre was established in November, 2000. It is a classroom training program on subjects related to the capital market, such as equities trading and settlement procedure, derivatives trading, day trading, arbitrage operations, technical analysis, financial planning, and compliance [12] requirement. ISE also offers Joint Certification Training programmes in association with its partners. [edit]Listing The trading platform of ISE enables the 'Indian companies to access equity capital, by providing a liquid [13] and well-regulated market. Scrips which are already being traded on stock exchanges across India are

traded on the Exchange. ISEs trading members in India trade on the scrips a nd provide liquidity and visibility to such scrips. Traders, Dealers and their clients. Products : ISE is a national-level stock exchange and provides trading, clearing, settlement, risk management and surveillance support to its Traders and Dealers. Provides the investors in smaller cities a one-stop solution for cost-effective and efficient trading and settlement in securities.

Contact Info
N.A.

Inter-Connected Stock Exchange Of India Limited

International Infotech Park Tower 7, 5Th Floor, Sector - 30 Vashi Navi Mumbai - 400703 (Maharashtra) India Phone(s) : +91-22-2781 2056 / 58 / 59 / 60 / 62 / 2781 2138 / 2781 2406 Mobile : Fax : +91-22-2781 2061