The Hindu Business Line : CSE adopts resolution for demutualisation

AN extra-ordinary general meeting of members of the Calcutta Stock Exchange (CSE) has adopted a resolution regarding the demutualisation of the exchange. Members have proposed to meet again later this month to discuss a number of pending issues, including those related to the Settlement Guarantee Fund.

The passage of the resolution did not take place easily, with members raising a lot of questions regarding the functioning of Mr T.K. Das, the Administrator appointed by SEBI. They, however, generally agreed that demutualisation would be an important move on the part of CSE, and that the process should be hastened in order to ensure the continuity of the exchange.

With this, the threat that CSE would face de-recognition would not be there, members pointed out.

Administrator not obliged to share SEBI correspondence with members: The SEBI-appointed Administrator on Wednesday made it clear that he was not obliged to share all correspondence from the regulator with members of the exchange. The statement, however, sparked off an uproar - of a scale that has not been witnessed at a general meeting in recent times.

The bone of contention was a note issued by SEBI, which mentioned crucial points concerning members of the exchange. Pointing out that these were indeed significant for their business, CSE members felt that the note should have been brought to their notice in an appropriate manner.

A section of the members also questioned the right of the Administrator to conduct the EGM, urging him to state clearly whether the law permitted him to chair such a meeting. The exchange, in response, mentioned that it has already sought legal opinion on the matter. In the absence of a committee, the Administrator was fully entitled to preside over an EGM, it was explained. Some members also claimed that letters written by them to Mr Das did not elicit response.