While the company's initial focus would be on meeting the IT requirements of the exchange, it would develop products for exchanges, clearing corporations, depositories and even banks in the area of debt markets, treasury management and asset-liability management. The NSE board which met here on Friday gave its approval for setting up the new company.

The new company is expected to commence business by the beginning of the new millennium and the total staff strength of the new company is expected to be around 200 on the date of commencement.

According to the company, the new IT company would be synergistic with NSE's overall goal of harnessing the latesttechnology for the securities industry and business, IT was expected to be the bedrock of the securities industry in the future.

The separate company status would infuse better management and harnessing of technology skills and is also expected to provide a platform for taking up more challenging assignments both within India and outside. NSE, which pioneered the use of technology in the securities business, currently owns and operates the largest VSAT network in the country, making it one of the world's largest communication network used for financial services.

The bourse has designed and developed technologically complex IT solutions and has been among the first few companies in India to initiate major projects such as warehousing, interactive web-site, business continuity plan which involves a fullfledged disaster back-up site at Pune.