Stocks

CSE awaits Sebi nod to resume trading with new clearing house

PTI Kolkata | Updated on July 07, 2013

The Calcutta Stock Exchange is expecting to resume trading as the ground work for it with a new clearing house is complete, according to a source.

“Mock settlement of trading has begun as the infrastructure with a new clearing house is ready. We are just waiting for a formal nod from the regulator SEBI,” a CSE board member told PTI.

Indian Clearing Corporation Ltd — a clearing corporation for CSE — had applied for approval from SEBI in the last week of June, he said.

Clearing houses handle the confirmation, settlement and delivery of transactions.

Trading at the bourse was closed since April 4 after market regulator SEBI asked it to stop clearing and settlement of trades executed on C—Star unless compliant with the regulator norms.

As the in—house clearing house cannot carry out settlement after the SEBI directive, CSE decided to join BSE promoted ICCL for settlement activity and the board under the chairmanship of Dipankar Chatterji had approved of it on April 5.

The CSE is the only regional bourse in the country compliant with regulations and is trying to attract small companies of other regional exchanges to get listed in it as a cost effective solution compared to other national exchanges, officials said.

CSE currently offers its member—brokers to trade on National Stock Exchange and Bombay Stock Exchange beside C—Star on its own trading platform, which has lost significance compared to the national bourses.

Published on July 07, 2013

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