Cooperate more, compete less: SEBI tells SEs, depositories

Nifty BSE | NSE 29/05/12 Are Mutual Funds betting on Nifty?

Cooperate more, compete less. That's the message from market regulator CB Bhave, Chairman of SEBI, to the stock exchanges and the depositories. Mrinalini Krishna and Vidhi Godiawala report.

Market regulator SEBI wants the stock exchanges BSE and NSE and depositories NSDL and CDSL to work together more. Chairman CB Bhave says such cooperation - and not competition - will bode well for better and faster market development.

"What we have learnt is that while we spend much of time competing with each other, while we spend a fair amount of time in criticizing others, it's a good idea to get around the same table and try to do something for the market," Bhave says.

Bhave says the successful launch of the mutual fund trading platform at the nse is just the tip of the iceberg - proof that these entities can work together. He says the BSE will soon have a similar platform up and running but adds that continued cooperation will make more such innovations possible.

"I am very happy that teams at SEBI, NSE, NSDL, BSE and CDSL all of them came together. This working group was formed three months ago to have a look at this issue and sort out the practical problems that were involved and they've all come together and they've given a very effective solution," Bhave adds.

However, experts say competition cannot be ruled out completely. That's because AMFI wants two mutual fund platforms - one with NSE and NSDL and one with BSE and CDSL.