Thanks Hazarika for the detailed and very informative piece.
I am studying how to revive it and ideas would be welcome.
I wish you all the best. Sorry, but business never has been one of my stronger points to offer any suggestions :-). When the stock-market was hot in the USA, I did play it. Made some and lost some. And then we lost our shirts on it. Having been badly stung, now we depend on professionals to look after our nest-eggs.
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At 1:44 PM +0530 2/26/05, Shantikam Hazarika wrote:
Gauhati Stock Exchange was set up in 1984. Those were the heydays of the Indian stock market and the GSE really took off like anything. It was very vibrant and progressive. It was the fourth Stock Exchange in india to computerise. In the eighties when the Relaince tapped the investor market to raise resources, GSE contributed almost ten percent of the total resources mobilised by reliance through numerous trances. Even local companies, Like Premier cryogenics and Prag Bosimi saw their IPOs oversubscribed eight times through GSE.
Few things happened in the indian capital market. ...The regulatory body became indolent or incompetent, fly by night operators made merry and some unscruplous brokers started calling the shots. Ordinary retail investors lost about Rs. 10,000 crores in the bargain. The confidence in the market evaporated. Brokers refused to accept the reality and thought the Stock exchanges existed for their benefits only. The ordinary investors were completely forgotten.
The Government had to step in. It did in a manner that ruined the regional Stock exchanges like GSE. First of all, it made stringent rules, gave more teeth to the Securities and exchange Board of India (SEBI), liberalised listing norms etc.
Just then internet made its debut. On line trading became a possibility. The regional stock exchanges became irrelevant. The Government also floated the National Stock Exchanges (NSE) which was a fully online entity. The largest Stock Exchange the Bombay Stock exchange (BSE) also decided to become aggressive in the market. The result was that brokers started having NSE or BSE terminals at their places, even in places like Nazira in Assam. The Regional exchanges became marginalised.
GSE, which had a bunch of professionals running it (most were MBAs from GU. The late Parag Das was its General Manager before he left to edit the Pratidin). They all left. Then the GSE also had a fire accident that destoyed its computer system. Since there was no professional to manage the show, the GSE faltered badly and was rudderless and drifted in the situation. It continues to do so.
India has 24 regional exchanges, like those in Bhubaneswar, Patna, Jallandhar, Cochin etc. Most of them are not having any trading. Even the delhi Stock Exchange is hardly having any trading. These Exchanges are all on a drive to survive. Various models of reviving the RSEs are being flouted. An Interconnceted Stock Exchanges was formed with 14 of the regional exchanges, inlcuidng Gauhati, but it has not been very successful. Another mmodel in line witht he Euronext is also being tried.
Meanwhile gauhati Stock exchange is floundering, but surviving. It has gone for drastic cost cutting, but is still without a professional to head it. I am studying how to revive it and ideas would be welcome.
Shantikam hazarika
On Fri, 25 Feb 2005 11:56:48 -0600, Chan Mahanta <[EMAIL PROTECTED]> wrote:Greetings H. Long time no hear. Hope things are going well.
> >The Gauhati Stock Exchange was set up 20 years ago and was one of the >most vibrant SEs of india once upon a time.
*** And ?
What happened? The curiosity is killing me. Hope you will let us in on what happened :-).
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