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Mumbai: Reliance Money, controlled by the Anil Dhirubhai Ambani Group (ADAG), and Financial Technologies India (FTIL), which operates one of the world's largest exchange networks, are exploring the option of setting up their own equity exchange. This means that the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) are set to have some serious competition.



Since only five percent of Indian households invest in equities compared to the international average of up to 50 percent, both companies see enormous scope in this space, according to sources familiar with the developments.

The NSE enjoys a virtual monopoly in equity derivatives with daily average volumes at Rs 10,000 crore in the spot segment. In comparison, the BSE has daily average volume of just Rs 4,000 crore. The NSE's daily average volume in derivative segment is Rs 40,000 crore.
"We are not looking at the equity segment right now, but given an opportunity we will certainly look at setting up an exchange for small and medium enterprises," said Sudeep Bandyopadhyay, CEO, Reliance Money.
The FTIL group has interests in a currency futures exchange, commodity futures, power exchange and spot exchange for agricultural commodities and plans to set up an exchange for SMEs. It has set up exchanges overseas also.

"We are focusing on currency derivatives. All our initiatives in this segment are driven by innovation, information, education and research. We will continue to work hard and develop this segment and do not have any comments to make on the question at this point of time," said a spokesperson from FTIL, when asked about its plan for launching an exchange for equity trading.

Both aspirants will need Reserve Bank of India approval. For FTIL, the equity exchange would be an extension of MCX-SX, its currency trading exchange. Reliance Money will have to set up a new company.
Another issue could be equity holding. SEBI has recently decided to allow a single shareholder to hold a maximum of 15 percent in stock exchanges, but has not yet notified this. According to sources, the track record of the companies would be key in getting regulatory approvals.

As an aftermath of recession, employees are asked to work late by companies like Infosys to increase productivity, but those extra hours will be more harmful than good. "More hours does not do much to increase the productivity as the efficiency of the employee decreases as time prolongs," said Diana Joseph, Director, Fourth Wave.

An employee could also lose on his/her overall productivity by working late. So, more preference is given to the efficiency and the output of the work done than how long it took or how long the employee worked. Most companies follow the tried and tested module of an employee working an average of 8-9 hours a day.

The work productivity may increase depending on whether the employees are really working on business sites or surfing non-business sites. Websense, in its recent survey had pointed out that productivity loss per employee was 5.3 hours per week in surfing non-business websites. In this case, it also adds up to the administrative costs.

Sadhana Somasekhar, Joint Managing Director, Focus Infotech said, "Productivity might or might not increase depending on two criteria- if employee is self-motivated to finish a work and work late, there's positive change in productivity sees and if the employee is working late due to the work pressure or under compulsion, then the productivity is deemed to see negative influence in the long dash."