CALCUTTA, APRIL 4: The Association of NSE Members of India (ANMI) has decided to ask the National Stock Exchange (NSE) authorities to clarify whether it is a stock exchange as defined by the Securities Contract (Regulation) Act of 1956, or a private company or a government company.Briefing reporters after AMNI's board meeting here on Saturday, its chairman Vinod Gupta said: "We want to know the exact legal status of NSE. It cannot keep changing colours from a private firm to a stock exchange to a government-owned company."This clarification is among other demands in a charter that the association will present to the NSE authorities. One of the director's of the association VD Aggarwal said the NSE must be run according to the law of the land. The treatment of NSE brokers as trading members was "prima facie a gross violation of the SCR Act of 1956 and rules framed by Sebi for stock exchange administration," he added.AMNI's other demands include 50 per cent representation for NSE members in theexecutive and other committees formed by NSE. Besides, the member representatives on these committees should be elected by the member fraternity rather than being nominated by the NSE management as is the current practice.In addition, it proposes to request NSE to provide office space at the NSE premises in Mumbai and regional offices for ANMI so that it could improve interaction with the exchange authorities, Gupta said.ANMI has also sought other facilities for its members like free transferability of membership. At present, the cost of membership transfer is very high and puts restrictions on surrender of membership rights.Gupta pointed out that the membership transfer fee at present is Rs 25 lakh which is informally shared between the selling and the buying member. Besides, he added, NSE membership has zero resale value unlike cards of other major bourses where the market value is way above the minimum security deposit that the members have to maintain.ANMI is also seeking a reduction in annualmembership subscription fees and transaction charges to bring them closer to levels prevailing in other bourses. The NSE's annual subscription rate is Rs 1 lakh against less than Rs 10,000 in most other bourses.
