Eleven members of the Calcutta Stock Exchange (CSE) have applied for installation of BSE On Line Trading (BOLT) terminals in a bid to enhance business volumes by availing of opportunities and grab business from foreign institutional investors through their Mumbai counterparts.
The governing board of the local bourse has already cleared the proposals, giving a no-objection certificate. The brokers include Anil & Company, Shyam Sundar Dalmia, Paras Ram Somani, Dayco Securities, Damani & Sons, Murli M Chandak & Company, Ratanlal Agarwala, Murari & Company, Ajit Surana, Bhuwalka & Sons and Prakash Devidas Shah.
The move is a sequel to the exchange signing an agreement with the Bombay Stock Exchange on May 31, 1997, and finalising the modalities of the reciprocal extension of BOLT to Lyons Ranges C-STAR to Mumbai.
Members keen on having a BOLT terminal will have to firm up a working arrangement with theirBombay Stock Exchange counterparts and seek their consent. On the other hand, installation of C-STAR terminals for Mumbai brokers is subject to the setting up of the settlement guarantee fund by the Calcutta exchange. Currently, the settlement guarantee fund module of CSE is under perusal by the Sebi.
Senior members of the exchange said the agreement between the two exchanges will be compared in every parameter with the National Stock Exchange and the results weighed before other Calcutta bourse members apply for BOLT terminals.
The memorandum of understanding with the BSE is in line with the agreement entered into between the Ahmedabad Stock Exchange and the BSE, with only few changes and amendments in the rules and regulations of the local bourse to give effect to the signed understanding.
The CSE governing board has already introduced a new by-law to facilitate setting up of BOLT terminals in Calcutta. As per the new by-law, arbitration disputes arising as a result of trading on BOLT will be handled by CSE.
Modalities of adequate risk management system will be worked out by the CSEs clearing corporation and CSE jointly.