Inter-connected Stock Exchange Ltd.

(ISE) is an Indian national-level stock exchange, providing trading, clearing, settlement, risk management and
surveillance support to its trading members. It started its operation in 1998[1] in Vashi, Mumbai,[2] and has 841 trading members, who are located in 18
cities. These intermediaries are administratively supported through the regional offices at Delhi, Kolkata, Patna, Ahmedabad, Coimbatore and Nagpur,
besides Mumbai.[3]
The ISE is promoted by 12 regional stock exchanges[4] namely at Bangalore, Bhubaneshwar, Chennai, Kochi, Coimbatore, Guwahati, Indore, Jaipur,
Kanpur, Mangalore, Magadh and Vadodara.[5] The participating exchanges of ISE have 4,500[6] members and listed securities. It is a stock exchange
of stock exchanges,[7] members of the stock exchanges being traders on the ISE.
Contents [hide]
1 History
2 Services
2.1 Membership
2.2 Depository services
2.3 Research and Training
2.4 Listing
3 References
4 External links
History[edit]
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, Inter-connected Stock Exchange (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 by SEBI under the Securities
Contracts (Regulations) Act, 1956 on November 18, 1998, ISE commenced trading on February 26, 1999.[citation needed]
ISE was launched with an objective of converting small, fragmented and illiquid markets into large, liquid national-level markets. 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.[citation needed]
Services[edit]
Membership[edit]
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
Depository services[edit]
Inter-connected Stock Exchange is a Depository Participant of Central Depository Service (India) Limited (CDSL)[8] and National Securities Depository
Limited (NSDL).[9] 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:[10]
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)
Research and Training[edit]
The ISE Training centre was established in November, 2000.[11] 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
requirement.[12] ISE also offers Joint Certification Training programmes in association with its partners.
Listing[edit]
The trading platform of ISE enables the 'Indian companies to access equity capital, by providing a liquid and well-regulated market.[13] 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 and provide
liquidity and visibility to such scrips.