New Cse Ed To Take Charge Tomorrow

P K Sarkar, former deputy managing director and chief financial officer of State Bank of India (SBI), is set to take over as the executive director (ED) of Calcutta Stock Exchange (CSE) from Wednesday. The current incumbent, Nityananda Dasgupta, retires tomorrow.

The CSE had nominated Sarkar as the ED on January 14, which was later ratified by the Securities and Exchange Board of India.

Sarkar retired recently from the SBI. He had served the bank in various capacities, like chief general manager (West Bengal circle) and deputy managing director.

Dasgupta was appointed acting executive director after the markets regulator asked the former executive director to leave just a few days before his term was slated to expire.

CSE, which was brought down to its knees by the March payment crisis, did not witness much of activities at any front during Dasgutpa's tenure.

The bourse thus far has failed to introduce the much-talked about stock specific futures trading. In fact, it was not able to prepare a formal application to launch futures to Sebi. It did not do a commendable job in recovering money from the defaulters as well.

But the exchange during the last few months has succeeded in large part in imposing a stricter margin regime on brokers. Faulty margin collection mechanism is believed to be one of the key reasons for CSE embracing the payment crisis.

Lyons Range brokers hope the situation will improve under the stewardship of Sarkar. Many of the brokers know Sarkar since he was the chief general manager of SBI two years ago.

Sebi also hopes that the scheme of affairs at Lyons Range will be "better" with appointment of Sarkar as the chief of affairs. In fact, Sebi overlooked the Mayya Committee recommendation of model stock exchanges.

The recommendations had fixed the superannuation age of EDs at 60 years. The report said "the appointment of the managing director would be renewed, subject to superannuation upon completion of 60 years".

Sebi has adopted the Mayya Committee recommendations and said the designation of the ED be changed to that of a managing director " in tune with the importance of the post and within an objective to strength the position."

Sebi sources said the market regulator would consider the proposed bar on ED's age later.