The 72-year-old Madras Stock Exchange (MSE) has got a new lease of life by tying up with the National Stock Exchange (NSE). To start with, 10 companies listed on the MSE will trade on NSE in both the cash and derivative segments. CNBC-TV18’s Divya Rajagopal and Vidhi Godhiwala report.

It is a landmark deal, as stock exchanges go and breathes new life into the ailing MSE. It has tied up with NSE in a deal that will allow companies listed on the MSE to trade on the NSE. This trading will take place both in the cash and the derivatives segments. This means smaller companies which did not have the adequate capital base to list on NSE, can still trade through the NSE's platform. The market regulator says that such a deal will give regional exchanges a much-needed leg up.

CB Bhave, Chairman of Securities Exchange Board of India (SEBI) said, “Through this experiment, you are attempting to provide a national platform to some of the regionally listed companies. This is an interesting proposition. We should hope that we make progress in that direction”

Depending on the success of this partnership, the number of MSE listed companies allowed to trade on the NSE may rise as the number of such tie-ups with regional stock exchanges will rise. The only other regional exchange that has seen a tie up like this before is the Calcutta Stock Exchange, which has a partnership with the Bombay Stock Exchange (BSE). However, the success of the NSE's deal with the MSE will mean an avenue for more regional exchanges to be recalled to life.