The Hindu Business Line : CSE directors meet to protect interests

THE elected Directors of the Calcutta Stock Exchange on Friday met with the ordinary members of the bourse and decided to take appropriate legal action to protect their legitimate interests.

Speaking to newspersons after the meeting, Mr S.K. Kaushik, one of the Directors, said that a three-member committee was formed to initiate and co-ordinate action in this direction.

He mentioned the issue of protecting members' interest, namely deposits of Rs 10 lakh each with the exchange, as also interest, bonus and dividend accrued to the cash and securities deposits.

"Ensuring the safety and sanctity of the settlement guarantee fund was also considered," Mr Kaushik added.

The SEBI has served the CSE a show-cause notice asking it to explain why the exchange management should not be superseded.

The seven CSE Directors, in a joint response, said recently that they had approved the draft scheme of demutualisation instantly when it was placed before the governing committee.

Even the general members' approval was obtained by the elected Directors at a meeting on July 22.

"But for the reasons best known to the then Chairman and the officer on special duty (discharging the responsibilities of an Executive Director), the scheme was not accepted by the committee."

In their letter to the SEBI, the elected directors said that the regulator-appointed and nominated representatives on the CSE panel shirked their collective and individual responsibility and quietly chose to resign after the show-cause notice was served.

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