The Hindu Business Line : CSE showing no signs of turning the corner

LARGE deals in prominent counters, so commonplace in leading stock exchanges, are still a rare commodity on Lyons Range even as the Kolkata bourse prepares ground for its annual general meeting early next year.

Trading volumes on Lyons Range are firmly staying in the sub-Rs 10-crore level, as Friday's trading indicated. Many of the scrips that topped the turnover chart were local names - little known companies that are typically trading and financial services outfits. The occasional Zee Tele, Hindalco and Larsen & Toubro apart, these are counters that have been attracting speculators in sizeable numbers in recent times.

For the record, the top-turnover companies on Friday included the likes of Nageshwar Investment, Stenley Credit Capital and Shree Nidhi Trading Co, all of which have extremely low market capitalisations. The number of shares that changed hands was also small.

That the exchange is in trouble is clear from the nature of trading that is going on, say CSE sources. There are few signs that changes are in the offing, they add in an indirect reference to a recent remark by Mr G.N. Bajpai, the SEBI Chairman. The latter had noted that CSE, which has been placed under an administrator (Mr T.K. Das) for one year, should be back on its feet. Certain issues stemming from risk management were involved and Mr Das had been deputed to address these, Mr Bajpai had pointed out.

It may be mentioned here that only 92 scrips were traded in Kolkata on Friday, accounting for 701 trades.

CSE clocked a turnover of Rs 9.07 crore. CSE-40, the local index, closed at 3202.45 after opening at 3172.58.

SEBI debars 2 more

CLOSE on the heels of upholding its decision to ban Mr Sunil Kayan, allegedly the brain behind dabba trading on Lyons Range, SEBI has taken action against two members of the Calcutta Stock Exchange for indulging in off-market transactions and fund-based activities. Sanjeev Phumbhra and Renu Poddar will both be suspended for six months with effect from January 5, 2004.

The ban comes a few weeks before CSE is expected to hold its AGM (slated for January 7, 2004). On Friday, the exchange authorities said corporate members would be eligible to attend by furnishing board resolutions by December 31.

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