The 103-year-old Calcutta Stock Exchange (CSE) on Monday launched operations on the National Stock Exchange (NSE) platform, becoming the only stock exchange in India to offer facility to trade on three trading platforms — Bombay Stock Exchange (BSE), National Stock Exchange (NSE) and CSE — with a single membership.
CSE, which had gone into doldrums following a payment crisis a few years ago, is now trying to craft a revival. It is also planning to activate the derivatives segment on the BSE and the NSE after complying with the necessary formalities in this regard. CSE Managing Director B. Madhav Reddy said that he was hopeful of the bourse achieving a Rs.500-crore turnover by March 2012 following Monday's launch. CSE's turnover stands at around Rs.70 crore now. “Volumes will get boosted as depth increases following this initiative,” he said.
Talking to reporters after the formal launch, Mr. Reddy said plans were also afoot to tie-up with other regional exchanges such as those at Guwahati and Bhubaneswar for allowing their listed companies to access the trading platform of CSE through the permitted category.
At present, there are 2,606 companies listed on the CSE, of which 1,550 are listed exclusively on the CSE. Mr. Reddy said that recently two New Delhi-based companies — Tribute Financial Company and Elite Leasing — were listed on the CSE.
He said the CSE would fund a Chair at the Calcutta University for conducting studies in financial markets. About Rs.25 lakh has been earmarked for this project out of the interest earned from the corpus of Investors Service Fund.
Sanjay Budhia, CSE Director, said the exchange became defunct six years ago when its board of directors were suspended by the Securities and Exchange Board of India (SEBI) (following some payment irregularities). Now it is a corporatised, de-mutalised body in which the BSE has the single-largest shareholding followed by a State-run corporation and big corporate houses of the city.
State Industry Minister Partha Chatterjee, who launched the NSE initiative, said that these moves were part of a plan to make the city emerge as a financial hub. He also inaugurated a 30-feet-long LED ticker, displaying live market rates. He also started the Bangal version of the CSE website.