CSE hoping to resume trade on C-star platform

The Calcutta Stock Exchange (CSE), one of the country's oldest, is hoping to resume trading on its own platform C-star, which has remained closed since April 2013.

"We are hopeful of resuming trading on our own trading platform C-Star soon after Securities and Exchange Board of India (Sebi) circular core settlement guarantee fund which gives greater clarity on the risk for clearing corporations," CSE MD & CEO B Madhav Reddy told PTI.

"We are evaluating to meet the regulator's requirement in meeting the risks on the clearing corporation," he said.

Reddy said that the CSE had settlement guarantee fund of over Rs 100 crore. It had also appointed a consultant to sell a real estate asset to raise Rs 250-300 crore to be ploughed back for running of the exchange.

The sources said that with the new guidelines on risk management in place they would not even require to buy a stake in a clearing corporation which they were planning earlier by hiving off assets.

Due to clearing corporation hurdle, C-Star, the CSE's own platform, remained non-functional since April 2013.

CSE failed to meet capital adequacy of Rs 500 crore for the new clearing corporation and was trying to tie up with other operational clearing corporations to carry out the settlements. The CSE had also sought an extension of nine months for implementing the Sebi's guidelines for regional stock exchanges, which ended in May, 2014.