Exchange is setting up a new membership category.

Under the new membership category companies would not have trading privileges but would be allowed to sponsor listings by mutual funds. The new category would open membership in the exchange to law firms, accounting firms trust companies and fund administration groups.

The new members would be charged a nominal fee for joining the stock exchange.

The BSX would also gain annual revenue from each listing.

"Our main objective is the make these guys our marketing team selling the listing to their clients,'' BSX chief executive officer William Woods said.

The new membership category is subject to Bermuda Monetary Authority approval.

Currently, Luxembourg has the largest amount of offshore mutual fund registrations, with Dublin gaining ground. About 54 percent of offshore mutual funds are registered in Luxembourg, seven percent in Dublin, and four percent in Bermuda. Bermuda had a 27 percent increase in 1996 of mutual funds being set up on the Island compared to the previous year.