Two to three regional stock exchanges have evinced interest in letting their members to join Calcutta Stock Exchange (CSE).

Madhav Reddy, CEO of CSE, told Business Line that the exchange had earlier offered the exchanges, facing SEBI de-recognition, a proposal to facilitate such an arragement.

According to him, talks between CSE and a few stock exchanges have progressed to an advanced stage.

Sources said the Ludhiana, Bhubneshwar and Pune stock exchanges have been negotiating with the CSE on this issue.

Negotiations were also on for bringing of companies, listed exclusively on these stock exchanges, to CSE fold.

Market regulator had earlier permitted membership of such brokers from other exchanges for a base minimum capital of Rs 4 lakh for proprietary trades and another Rs 6 lakh for client trades.

These brokers may be directly registered with CSE and may trade on CSE platform as well as BSE and NSE platforms through CSE. This avoids the need to merge exchanges that can throw up complications regarding asset valuation and financial integration. It also does not come in way of an exit of a stock exchange.

CSE, meanwhile, has decided to assign Indian Clearing Corporation the clearing job for the trades on its electronic platform C-Star.

Last week, CSE board took the decision. So far, CSE has been conducting clearing function for its own platform in-house.

According to SEBI, if a stock exchange eligible for voluntary de-recognition is not able to achieve a turnover of 1000 crore on continuous basis or does not apply for voluntary de-recognition and exit within a regulator prescribed period, will face the compulsory de-recognition and exit.

jayanta.mallick@thehindu.co.in

(This article was published on April 8, 2013)
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