Calcutta Stock Exchange appoints Nomura for roping in new investors

CSE is the only exchange meeting Sebi's new regional exchnages nomrs

The Calcutta Stock Exchange (CSE) has roped in Noumra as a consultant for roping in new investors.

After the Securities and Exchange Board of India (Sebi) came out with new norms governing regional stock exchanges, CSE is only regional exchange to partially meet the criteria. However, the exchange has been struggling to forge a tie-up with a clearing corporation to stay afloat.

"Our net worth is close to Rs 105 crore. Any new entity, who joins us as a shareholder, national or international, which will led to an increase in valuation, which would give immense strength to the exchange. We appointed Nomura in January, and we hope to get their recommendations soon," B Madhav Reddy, managing director and CEO of CSE, told Business Standard.

Meanwhile, CSE has appointed Jones Lang LaSalle (JLL) for sale of nearly three acres of prime land on the eastern commercial corridor of the city.

Also, CSE is in talks with ICCL, the Clearing Corporation of BSE, BSE and MCX-SX for a tie-up for a clearing corporation.

"We are looking for a tie-up with an existing clearing corporation, but in case it does not materializes, we might have to set up our own clearing corporation.

In 2012, Sebi brought out new norms for RSEs, under which, they need to own a trading platform, with an annual trading of not less than than Rs 1,000 crore, to stay afloat. This apart, the net worth of the exchange should not be less than Rs 100 crore, said the norms.

CSE was the only RSE to conform to the norms on trading platform and net worth, which impelled other RSEs to seek a tie-up with CSE. The exchange has its own trading platform called C-Star. However, CSE failed to meet the criterion set by the regulator of a tie-up with a recognized clearing corporation.

CSE, in which BSE has 5% stake, is the only regional stock exchange to have its own trading platform, the C-Star, and a net worth of Rs 100 crore as it owns a number of properties in Kolkata.

In April 2013, CSE had to suspend trading as it failed to comply with the Stock Exchanges and Clearing Corporations Regulations, 2012. So long, CSE was executing trade through its in-house clearing mechanism.

Present investors at CSE include nearly 31 entities, including Bombay Stock Exchnage, which has nearly 5% stake in CSE.