Cse Brokers For Agm To Be Put Off

Uncertainty looms large over the annual general meeting of the Calcutta Stock Exchange (CSE) as some members are contemplating deferring the meeting till the Securities and Exchange Board of India (Sebi) comes out with clear guidelines on brokers' role in the management of stock exchanges.

The CSE brokers are doubtful about the elected brokers' role in the management of the bourse even though 15 members -- out of the total 17 nominations -- were declared eligible to contest the elections.

The brokers are in favour of conducting the AGM after Sebi finalises the guidelines for the proposed demutualisation of stock exchanges.

Sebi is expected to meet towards the end of this month to finalise the issue. Brokers said if the Sebi meeting failed to reach a conclusion, the elected members would have nothing to do with the management of the bourse.

"It is better to wait until the Sebi verdict comes out. Hence, we are planning to seek a three-month extension for conducting the AGM," a senior CSE broker said.

It may be recalled that the CSE management had moved the Registrar of Companies (RoC) to defer the AGM from September to December to avoid a constitutional crisis and was granted an extension.

However, since Sebi failed to prepare its blueprint on the issue until now, the CSE management convened the AGM on December 29 with a rider that the election of the brokers would be subject to the Sebi decision on demutualisation.

If the AGM happens at all, CSE members will try to send a bunch of consensus candidates to the board.

A member said six contestants would withdraw from the fray to pave the way of the remaining nine to the board.