Competition threats: NSE to respond in ‘appropriate’ way

Updated - September 18, 2012 at 09:51 PM.

On competition from MCX-SX, which plans to enter equity segment from mid-November, Ravi Narain, the NSE Managing Director & CEO, on Tuesday said that there has been competition ever since he had entered the industry. “Some days there was more competition. Some days there was less competition. The same will happen tomorrow. We will continue to respond in an appropriate way. We will always ensure that whatever responses come out of NSE will help strengthen, build and grow India’s markets,” Narain told reporters here.

Earlier, speaking at the launch of its SME platform on Tuesday, Narain, said the NSE would take all possible efforts to reduce costs for SMEs to raise capital. Creating trading interest in secondary liquidity is also a top priority. Apart from offering research reports on listed companies, NSE is also offering alternative trading options to issuers which could help in aggregating liquidity. Depending upon the expected liquidity and trading interest levels, the SME securities could trade either on the continuous market (similar to main board) or have daily liquidity windows through call auctions, which will help aggregate liquidity and control volatility in the SME stocks.

> srivats,kr@thehindu.co.in

Published on September 18, 2012 16:21