Inter-connected Stock Exchange Ltd. (ISE) is an Indian national-level

stock exchange A stock exchange, securities exchange, or bourse is an exchange where stockbrokers and traders can buy and sell securities, such as shares of stock, bonds and other financial instruments. Stock exchanges may also provide facilities for th ...

. under the

ownership Ownership is the state or fact of legal possession and control over property, which may be any asset, tangible or intangible. Ownership can involve multiple rights, collectively referred to as title, which may be separated and held by different ...

Ministry of Finance A ministry of finance is a part of the government in most countries that is responsible for matters related to the finance. Lists of current ministries of finance Named "Ministry" * Ministry of Finance (Afghanistan) * Ministry of Finance and ...

Government of India The Government of India ( ISO: ; often abbreviated as GoI), known as the Union Government or Central Government but often simply as the Centre, is the national government of the Republic of India, a federal democracy located in South Asia, ...

. It is responsible for providing

trading Trade involves the transfer of goods and services from one person or entity to another, often in exchange for money. Economists refer to a system or network that allows trade as a market. An early form of trade, barter, saw the direct exch ...

clearing Clearing may refer to: Arts and media * ''Clearing'' (Fred Frith album), 2001 * Clearing (Hyd album), 2022 * ''The Clearing'' (film), a 2004 drama film * The Clearing (EP), a 2006 EP by Weatherbox * ''The Clearing'' (Sleep for Sleepers album), ...

settlement Settlement may refer to: *Human settlement, a community where people live *Settlement (structural), the distortion or disruption of parts of a building *Closing (real estate), the final step in executing a real estate transaction *Settlement (fina ...

, risk management and surveillance support to its trading members. It started its operation in 1998 in

Vashi Juhu Vashi (Pronunciation: �aːʃiː is an upmarket residential and commercial node in Navi Mumbai, Maharashtra, across the Thane Creek of the Arabian Sea on the outskirts of city of Mumbai. The Juhu Vashi is named after the largest village ...

Mumbai Mumbai (, ; also known as Bombay — the official name until 1995) is the capital city of the Indian state of Maharashtra and the ''de facto'' financial centre of India. According to the United Nations, as of 2018, Mumbai is the secon ...

, and has 841 trading members, who are located in 18 cities. These intermediaries are administratively supported through the regional offices at

Delhi Delhi, officially the National Capital Territory (NCT) of Delhi, is a city and a union territory of India containing New Delhi, the capital of India. Straddling the Yamuna river, primarily its western or right bank, Delhi shares borders wi ...

Kolkata Kolkata (, or , ; also known as Calcutta , List of renamed places in India#West Bengal, the official name until 2001) is the Capital city, capital of the Indian States and union territories of India, state of West Bengal, on the eastern ba ...

Patna Patna ( ), historically known as Pataliputra, is the capital and largest city of the state of Bihar in India. According to the United Nations, as of 2018, Patna had a population of 2.35 million, making it the 19th largest city in India. ...

, Ahmedabad, Coimbatore and

Nagpur Nagpur (pronunciation: Help:IPA/Marathi, aːɡpuːɾ is the third largest city and the winter capital of the Indian state of Maharashtra. It is the 13th largest city in India by population and according to an Oxford's Economics report, Nag ...

, besides

. The ISE is promoted by 12 regional stock exchanges namely at

Bangalore Bangalore (), officially Bengaluru (), is the capital and largest city of the Indian state of Karnataka. It has a population of more than and a metropolitan population of around , making it the third most populous city and fifth most ...

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, Coimbatore,

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Magadh Magadha was a region and one of the sixteen sa, script=Latn, Mahajanapadas, label=none, lit=Great Kingdoms of the Second Urbanization (600–200 BCE) in what is now south Bihar (before expansion) at the eastern Ganges Plain. Magadha was rule ...

and

Vadodara Vadodara (), also known as Baroda, is the second largest city in the Indian state of Gujarat. It serves as the administrative headquarters of the Vadodara district and is situated on the banks of the Vishwamitri River, from the state capita ...

. The participating exchanges of ISE have 4,500 members and listed securities. It is a stock exchange of stock exchanges, members of the stock exchanges being traders on the ISE.

History

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 The Securities and Exchange Board of India (SEBI) is the regulatory body for securities and commodity market in India under the ownership of Ministry of Finance within the Government of India. It was established on 12 April 1988 as an execut ...

under the Securities Contracts (Regulations) Act, 1956 on 18 November 1998, ISE commenced trading on 26 February 1999. 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

with the Chairman of the Exchange being also a Public Representative Director from its inception. Unfortunately for the RSEs, particularly small

brokers A broker is a person or firm who arranges transactions between a buyer and a seller for a commission when the deal is executed. A broker who also acts as a seller or as a buyer becomes a principal party to the deal. Neither role should be conf ...

, 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. SEBI permitted ISE to exit bourse business as per the SEBI order on 8 December 2014.

Services

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

Depository services

Inter-connected Stock Exchange is a Depository Participant of Central Depository Service (India) 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)

Research and Training

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 requirement. ISE also offers Joint Certification Training programmes in association with its partners.

Listing

The trading platform of ISE enables the 'Indian companies' to access equity capital, by providing a liquid and well-regulated market.
Scrips which are already being traded on stock exchanges across India are traded on the Exchange. ISE's trading members in India trade on the scrips and provide liquidity and visibility to such scrips.

References

External links

* {{Stock exchanges in India

BSE BSE may refer to: Medicine * Bovine spongiform encephalopathy, also known as mad cow disease, a neurodegenerative disease of cattle * Breast self-examination Stock exchanges * Bahrain Stock Exchange, Bahrain * Baku Stock Exchange, Azerbaijan * ...

Financial services companies established in 1998 Financial services companies based in Mumbai Former stock exchanges in India 1998 establishments in Maharashtra Indian companies established in 1998