Cse Set To Claim Damages From Cmc, Indusind

The Calcutta Stock Exchange (CSE) has initiated moves to claim damage from its software service provider CMC Ltd and clearing bank IndusInd Bank for lapses in executing responsibilities, leading to the payment crisis in March last year.

CSE acting executive director N Dasgupta said the exchange was in discussions with CMC as well as IndusInd to realise "some money" in damage. However, he did not quantify the amount that could be realised from them.

CSE holds CMC responsible for existence of a software bug in the margin collection system which sweeps off margin outstanding of a broker beyond a certain amount. On the other hand, CSE claims that IndusInd did not timely report the exchange that four cheques for nearly Rs 15 crore were dishonoured.

At its meeting today, the exchange board approved the balance sheet for 2000-01 with a loss of nearly Rs 10 crore. Even after recording a cash profit of Rs 32 crore, the bourse had to incur the loss due to combined provisioning of Rs 22 crore on account of depreciation and withdrawal from general reserves as well as settlement guarantee fund.

CSE chairman Dipankar Basu said the bourse would convene the annual general meeting by December 31. It had received permission from the Registrar of Companies (RoC) for extension of the AGM for three months.

Meanwhile, the CSE board did not decide on whether printing of the exchange's logo on a member's visiting card and official letterhead would be permissible. CSE would take a decision in line with the practice of NSE and BSE.