India's regional stock exchanges will draw up a roadmap on Saturday to form a consolidated larger entity 'Indonext' or merge the trading platform with bigger bourses, like the Bombay Stock Exchange.

The roadmap will be based on the recommendations made by the Securities and Exchange Board of India.

The steering committee constituted by the Federation of Indian Stock Exchanges, which has representations from 20 regional bourses, along with officials from BSE, Over-The-Counter Exchange of India, and Sebi will discuss the issue at a meeting in Mumbai.

"We would like to have a con order book, trading platform, settlement cycle and depositories to set up a consolidated exchange 'Indonext'. The Inter-connected Stock Exchange (ISE) and the BSE have already offered their trading platforms for Indonext," FISE president Vijay Bhushan said.

The National Stock Exchange has not come to the rescue of the regional stock exchanges, which now look towards the other big brother, Bombay Stock Exchange, for help.

The meeting assumes significance in view of Sebi Chairman G N Bajpai's proposal to consolidate the bourses during his last meeting with top FISE officials in the first week of June in New Delhi.

The Kania committee on the demutualisation of bourses, appointed by Sebi last year, had suggested the 'Euronext' model for the regional stock exchanges.

The Sebi proposal comes in the wake of the declining or virtually zero-trading sessions in most regional bourses in the last few years.

Apart from this, profitability of the regional bourses has also come down sharply, with earnings from listing fees declining over the years.

Although physical merger may not be preferred by most regional exchanges, Bhushan said: "We can have a common trading platform and uniform settlement system."

The idea of 'Indonext' is based on the success of Euronext, which is a conglomerate of stock exchanges of several European nations and Nasdaq.

At least 14 regional exchanges under ISE, along with others like Delhi Stock Exchange, have evinced interest in the 'Indonext' model, Bhushan said.

Another major regional bourse, Calcutta Stock Exchange is yet to decide on joining the proposed Indonext.

He said FISE's steering committee will propose that BSE should permit the exclusive listing of companies up to Rs 20 crore (Rs 200 million) in Indonext. This would cover 80 per cent of the 10,000 companies listed in Indian capital market.

If ISE joins Indonext, it should also offer a portion of its listing fees to the next exchange, Bhushan said.

FISE will also propose that all the income generated from the listings should go to Indonext, while participating exchanges should offer their technology and communication assets to the new bourse, Bhushan said.