The Hindu Business Line : Efforts on to revive CSE

LYONS Range operatives are urging institutional investors to route some of their business through local stock broking firms. This, they say, could make a difference to the fate of Calcutta Stock Exchange (CSE), the country's number two bourse till some years ago and now facing closure.

Brokers in Kolkata are again appealing to the exchange management for roping in friendly institutions, especially those that conduct large volumes of transactions, to come to the aid of its members. The view comes at a time when the exchange, now operating under a SEBI-appointed administrator, is set to hold an EGM. The meeting is expected to take up the issue of demutualisation.

CSE circles point to the trading figures that are being recorded everyday, insignificant as they are when compared to the numbers that were commonplace not long ago. The figures clearly show that not more than a handful of stocks are traded on the exchange on a regular basis. On an average day, transaction volumes are low and the value of shares traded on CSE is of little consequence.

A section of Lyons Range brokers feel that the authorities in charge of the bourse need to be far more active in order to improve its financial position. In this context, they pointed to a meeting with MPs in June. The meeting, organised by the Calcutta Securities Brokers Welfare Association, had urged the CSE authorities to pursue the recovery of dues from defaulters. The CSE employees union too had submitted a memorandum to the MPs.

The brokers' body held another meeting on July 20 to discuss various issues relating to demutualisation of the exchange. The association has decided to pass the resolution regarding demutualisation — no opposition to the proposal, therefore, may be expected to take place on Wednesday.