DSE's Second Coming ; The Delhi Stock Exchange (DSE) is all set to begin its new innings from February.

The Delhi Stock Exchange (DSE) is all set to begin its newinnings from February. It'll start with equity trading and graduallyscale up and enter the futures and options segment as well. Facedwith dwindling volumes, the exchange was shuttered seven years ago.The exchange, though, is buoyed by soaring trading volumes on theNSE and the BSE. "The increasing volumes show that there is anappetite for 4-5 stock exchanges in the country. At present, almost40 per cent of NSE volumes come from north India, " says H.S. Sidhu,Executive Director & CEO, DSE.

Exchange officials are now working overtime to woo back oldtrading members. DSE is doling out heavy discounts on deposit-basedtrading memberships. Moves are also afoot to ensure liquidity in the2,833 listed companies as many as 1,800 are exclusively listed onthe exchange. DSE is in the process of taking approval from SEBI tointroduce the marketmaking mechanism to improve their liquidity.

Despite the grand plans, clearly, it's going to be an uphill taskfor DSE to become a vibrant platform for equity trading again at atime when big daddy NSE has a stranglehold over the Indian stockmarkets.

THE GAMEPLAN

Undercut NSE's Market Share: Delhi alone accounts for 20 per centof NSE's volumes and DSE hopes to gradually nibble into its marketshare.

Retain Trading Members: DSE offers steep discounts on tradingmemberships Rs 13 lakh compared to NSE's Rs 3 crore and BSE's Rs 1crore.

Revive Liquidity on Listed Companies: Through market-making,which offers two-way quotes given by jobbers.