The Hindu Business Line : MCX keen on Calcutta bourse revival

The Multi Commodity Exchange of India (MCX) is betting on a "100 per cent revival" of the moribund Calcutta Stock Exchange, in which it hopes to come in as a strategic partner.

The commodity bourse hopes to take a more specific stand on the matter once the securities regulator comes up with guidelines for investment in exchanges.

"It will all depend on the regulations," said Mr Jignesh Shah, MD & CEO of MCX, adding that it will be possible to resuscitate CSE, which was not very long ago the country's second-largest exchange. Some action on this front is likely by December, it is said.

MCX, which intends to raise Rs 400 crore from the capital market, will have to grapple with an exchange that has in recent years seen its volumes decline markedly.

CSE, it may be mentioned, has a (revised) demutualisation scheme in place, which has been submitted to SEBI.

According to the scheme, a member (who is registered as a stockbroker) will become a Trading Member. The latter may or may not be a shareholder.

Further, CSE is to ensure that at least 51 per cent of its equity shares are held by the public (other than shareholders with trading rights).

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