CSE to chalk out business plan to introduce debt trading

KOLKATA, APRIL 29. The Calcutta Stock Exchange will chalk out a business plan to introduce debt trading, including gilts, in the exchange to cope with emerging scenario in the wake of proposed ban on forward trading from July two next even as it deferred submission of report on payment shortfall to the Securities and Exchange Board of India (SEBI).

``One of the areas the CSE had not looked into was debt trading, including gilts. We are thinking about and working on it now. We need to create a business plan, but no specific time frame can be given,'' CSE management sub-committee chairman Mr. Dipankar Basu told reporters after a meeting on Saturday. He said the draft report to be submitted to SEBI on payment shortfall that gripped the exchange in early March that triggered a country-wide crash in share prices was discussed during committee meeting and it was decided to modify it to include some more information.

The report will again be placed before the committee in its next meeting after inducting those suggestions before forwarding the same to the market watchdog.

Mr. Basu said they were trying to look ahead to improve CSE's image. "We have a lot of work to do in terms of defining the strategic directions." He also said efforts would be made to introduce derivatives trading at the exchange. "We need to do market operations to be in derivatives business. It will have to be decided whether we will have our own derivative segment or we will participate in other stock exchange's system," Mr. Basu said.

``Except BSE and NSE, none of the stock exchanges are ready with derivative trading and in these circumstances we will have to select our strategy if forward trading was indeed banned from July two next," Mr. Basu said.He said they were also exploring business proposals that could be offered to financial institutions, which could fund the exchange's future programmes.The committee, comprising nominated and public representatives, also met last seven years' Presidents and Vice- Presidents of CSE and sought their suggestions for improvement of exchange's image, he said.

``We thought that it would be appropriate to get views of the people who were originally doing business at the exchange and we look forward to such meeting in future as well," Mr. Basu said.

He said today's full committee meeting had spend quite a time on discussing future issues.


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