ISE plans daily, monthly badla

Mayya said ISE was in the process of getting all the clearances from the Securities and Exchange Board of India (SEBI) for badla trading.

"We will get all the clearances within a few months," a confident Mayya said. In the present weekly and daily badla structure at BSE there are instances when investors have to clear outstanding positions within a short period of time, he explained, adding the monthly badla would provide the depth required in the market.

"No stock exchange has thought of extending the badla period to increase thedepth, yet it remains one of the vital factors in determining market depth," Mayya said.

Speaking about arbitrage facility in the proposed stock exchange, the ISE chief said "there would be greater scope for the arbitrage facility and one can access more than two markets at the same time."

To facilitate brokers for trading in multiple markets, the unified stock exchange is framing a new software whose "windows" would be able to display the stock quotes of all the bourses and carry out online trade, the chairman said.

He did not disclose the names of the software vendors who are entrusted with the development of the software. The software is in the final phase of development, Mayya said. However, Mayya claimed that "the software would be more versatile than those used by NSE and BSE brokers, and able to handle such huge volume of data."

Reasoning out the delay in the commencing of the new exchange, Mayya said "the new exchange would be stressing on greater efficiency and transparency." Apart from beinga more diversified one, ISE would be more cost effective as more of the regional exchanges joins the league, Mayya said.