Tata Motors to put Ahmedabad Stock Exchange into overdrive
After Nano makes inroads, auto giant may get itself listed on ASE
Tata Motors, which is coming up with the Nano car plant in Ahmedabad district, also holds the key to turning around the fortunes of the Ahmedabad Stock Exchange (ASE). The company may soon get listed on the ASE.
Shareholders here always have a sentimental attachment to the companies which have manufacturing facility in the state. Both Arvind Mills and Reliance Industries have earned a lot of goodwill from the local investors. If Tata Motors decides to get listed at the ASE, it may ensue listing of other companies as well, which is likely to take the ASE to a path of revival.
As of now, there are barely any listings on the ASE as business has shifted to Mumbai. ASE members are sub-brokers of the BSE through the ASE Capital Markets Ltd (ACML), which is a member of the BSE. The business on the ASE went down because companies did not list their scrips after the Harshad Mehta securities scam.
The possibility of the revival of the ASE is not as remote as it seems if one goes by the recent SEBI announcement of allowing to raise individual cap on raising of personal holdings in the paid up equity capital of bourses from five to 15 per cent. Banks, insurance companies and stock exchanges fall in the categories that can have investment in stock exchanges.
ASE executive director K K Mishra is of the opinion that the SEBI move is a good omen for the ASE.
“It will not only give an exit route to the present shareholders, but also open up new vistas for fresh investors to give fillip to this historic bourse. It is also a good chance for the NSE and BSE to ponder over investment here and thus revive this exchange,” he said.
SEBI has been receiving requests that the present limit of 5 per cent is acting as a deterrent for attracting long-term anchor/strategic investors in stock exchanges.
Now that the market regulator has agreed to jack up the limit, this should prove a boon to exchanges like the ASE in their second coming – enough for fresh listings from the region
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